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Shoreham Grants Three Month Extension to REXMA�s
Start-up and Milestone Dates for Marudi Alluvial
Mining
LANGLEY, CANADA, December 4, 2009 � Shoreham Resources Ltd. (TSX-V:
�SMH�), a Canadian exploration company dedicated to the
exploration of advanced precious metal and polymetallic
deposits in South America and Canada, is providing this update to announce
further developments regarding planned alluvial gold production at its Marudi Mountain Gold Project in Guyana. Shoreham has
the right to earn a 75% working interest in the Marudi
Mountain Property by exercising an option to acquire 75% of the shares of Romanex Guyana Exploration Ltd. (holder of 100% of the
project) held by Vanessa Ventures Inc. (now Infinito
Gold Corp. TSX-V: �IG�). Shoreham must invest a total of $US 4,000,000 in
the project by March 2011 in order to acquire its 75% interest. Shoreham�s
expenditures to date significantly exceed the requirements of the agreement
and the Company expects to meet its vesting requirements ahead of schedule.
On August 21, 2008, Shoreham and Rexma Participacions (REXMA), an alluvial mine operator based
out of Leon, France signed a Definitive Agreement entitled �Project
Operating Plans and Principles � Marudi Mountain
Alluvial Mining Agreement�. This original agreement envisaged commencing
sustained alluvial production at a rate of 500 cubic meters per day
commencing July 1, 2009 with an ultimate target rate of 2,000 cubic meters
per day. In a News Release dated January 27, 2009, Shoreham realized that
additional environmental studies would be required in order for REXMA to
begin production and granted REXMA a three month extension to their
production start-up and other milestone deadlines.
Delays in the granting of the Mining License, the need for undertaking
additional Environmental Impact Studies and Reports, Community Relations
Meetings, Baseline Environmental Studies and the granting of duty free
importation Licenses have hampered REXMA�s
ability to perform and meet the revised milestones defined in the Operating
Agreement. Shoreham recognizes that the conditions responsible for REXMA�s failure to meet the defined goals were beyond REXMA�s control. On October 26, 2009, Shoreham issued
REXMA an addendum to the Agreement which provided REXMA with an additional
three Month extension to meet the milestone production dates. REXMA is now
to be in production by February 1, 2010 at a minimum sustained production
rate of 125,000 cubic meters per year and increasing their plant capacity
to 200,000 cubic meters per year by January 1, 2011 and further increasing
operations to at least 300,000 cubic meters per year prior to January 1,
2012. All of REXMA�s
production and processing equipment is ready for shipment from Cayenne in
French Guyana. REXMA is anxiously awaiting final importation documentation
so that they can begin plant construction.
REXMA will be responsible for all of its costs, will be required to pay
Shoreham an agreed upon monthly sum for Shoreham�s Guyanese overhead,
office and support costs, pay all royalties to the Guyanese government and
underlying royalty holders and will pay a gross production royalty of 10%
to Romanex 100% of which monies Shoreham has the
right to use to support its own exploration on the Marudi
property. In addition, all expenditures incurred by REXMA qualify as
earn-in expenditure by Shoreham to acquire 75% of Romanex.
Pursuant to notice provision, REXMA�s operations
must be relocated from areas which Shoreham needs to undertake its own
exploration and mining activities. Initial operations will be integrated as
a pre-stripping component of Shoreham�s development program for the
property. The benefits to Shoreham include improvements to access and
infrastructure, expansion of facilities, accelerated development of saprolite and bedrock targets, acceleration of property
interest vesting through qualified expenditures, generation of cash flow to
fund Shoreham�s own exploration and development programs and reduced overheads
through cost sharing.
David Bending, M.Sc., P. Geo., President and CEO of Shoreham Resources Ltd.
reports that; �The Company is very pleased to confirm that REXMA is fully
committed to begin alluvial mining and gold production at our Marudi Mountain Gold Project by February 1, 2010.�
For further information please visit our website at www.shoreham.ca or our Investor Relations Hub at www.agoracom.com/IR/Shoreham where you can post questions and receive answers
or review questions and answers already posted by other investors.
Neither the TSX Venture Exchange
nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release
SnapMail is a Service of www.RMC.mobi
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David A. Bending
President & CEO
Shoreham Resources Ltd.
105 A/B – 20270 Industrial Avenue
Langley, BC, V3A 4K7
Phone: 604-533-9288
Fax: 604-533-9296
Email: info@shoreham.ca
Web: www.shoreham.ca
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