SHOREHAM GRANTS OPTION OF REMAINING INTEREST IN SACHIGO LAKE PROPERTY TO ESCAPE GOLD INC.
LANGLEY, CANADA, November 3, 2009 – Shoreham Resources Ltd. (the “Company” or “Shoreham”) (TSX-V: “SMH”), a Canadian exploration company dedicated to the exploration of advanced precious metal and polymetallic deposits in Guyana and Canada, is pleased to announce that the Company has signed a Letter Agreement with Escape Gold Inc. (TSXV: EGT) (“Escape”) and MacDonald Mines Exploration Ltd. (TSXV:BMK) (“MacDonald”) dated October 15, 2009, pursuant to which the Company granted to Escape an option to acquire Shoreham’s remaining 40% in the Sachigo property (the “Property”), located in the Setting Net Lake Area of Ontario. Upon exercise of the option, Escape will acquire from the Company its remaining 40% interest (the “40% Shoreham Interest”) in the Property with the result that Escape shall have a 100% interest in the Property. Shoreham retains an Area of Influence of approximately 45,000 hectares surrounding the property and a 2 ½% Net Smelter Returns (“NSR”) Royalty Interest in the property. Escape retains a right to buy-back 1% of this royalty for $1,000,000. Subject to the acceptance of the TSX Venture Exchange and in order for Escape to exercise the 40% Shoreham Interest and acquire a 100% interest in the Property, Escape is required pay to the Company $50,000 in cash, issue to the Company 400,000 shares of Escape and issue to the Company 400,000 common share purchase warrants of Escape which entitle the Company to purchase an aggregate of 400,000 Escape common shares exercisable at a purchase price of $0.40 per share for a period of two years from the date of issue.
The Company originally entered into an Agreement (the “Escape Option Agreement”) dated January 8, 2007 with Escape, pursuant to which the Company granted to Escape the option to acquire a 60% interest in the Sachigo Lake property in consideration for certain cash payments, share issuances and exploration expenditures. As part of this Agreement, the Company granted Escape the right of first refusal (“RFR”) to match any offer made in relation to acquiring the remaining 40% Shoreham Interest. Upon Escape’s waiver of its RFR to acquire Shoreham’s 40% Interest pursuant to a letter dated October 6, 2008, MacDonald entered into an Agreement with Shoreham (the “MacDonald/Shoreham Option Agreement”) dated November 28, 2008 with the Company which granted MacDonald the option to earn up to an undivided 100% interest in the 40% Shoreham Interest by making certain payments. Subsequently, MacDonald and Shoreham amended the MacDonald/Shoreham Option on January 28, 2008 to reduce the cash payment from $150,000 to $100,000.
Pursuant to the Escape/Shoreham/MacDonald Letter Agreement dated October 15, 2009; MacDonald has no further rights or obligations in respect to the Property. Within 30 days from the later of the date of the Letter Agreement or the date on which regulatory approval is obtained, the Company has agreed to issue 250,000 shares of Shoreham to MacDonald in reimbursement for MacDonald’s payment to the Company of $50,000 on December 5, 2008, pursuant to the terms of the MacDonald/Shoreham Option Agreement.
David Bending, M.Sc., P.Geo., President and CEO of Shoreham Resources Ltd. reports that: "The Company is pleased that Escape Gold has proceeded to consolidate its interests in the Sachigo Lake Property. It is our sincere hope that Escape can proceed with evaluation and development of the targets there and that our long term investment in Escape Shares will be rewarding for Shoreham Shareholders.”
Effective October 1, 2009, the Agreement between Shoreham Resources and Pro-Edge Consultants Inc. was terminated. Pro-Edge was engaged in May, 2007 under an Investor Relations Service Agreement to assist Shoreham with investor relations activities.
For further information please visit our website at www.shoreham.ca or contact our President and CEO Mr. David A. Bending at 604-533-9288. Additional details concerning the company’s projects and plans are accessible at www.agoracom.com.
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.
