Shoreham Resources Ltd has announced that it has teamed up with Midas Rex Inc as operator for the production of alluvial diamonds, gold and platinum in Guyana.
According to a press release, under the terms of the agreement, Shoreham will receive 20 per cent in kind of all mineral products produced or 20 per cent of the gross proceeds realized from the sale of all production from Midas Rex’s alluvial mining activities.
Shoreham and Midas Rex will jointly pay for the cost of repairing Shoreham’s on-site equipment, which will be leased to Midas Rex at commercial hourly rates. Midas Rex must maintain a minimum average production rate of 100 cubic metres per day but plans to maintain significantly higher rates of production on completion of a test mining programme which commences June 2008.
David Bending, President and CEO of Shoreham Resources Ltd, said Shoreham now has two separate contracts in place whereby third parties will fund and manage alluvial mining activities “on both of our Guyana properties and thereby help offset overhead and camp operating expenses as well as provide Shoreham with royalty revenue which will be used to support Shoreham’s ongoing exploration activities.”
Bending said: “We are hopeful that sufficient cash flow will be realized from the alluvial mining to fund our exploration campaign on the Marudi Project while minimizing dilution from public funding.”
He said Shoreham was very encouraged by the gold values recently encountered in its gold exploration programme at the Marudi Project and will dedicate its corporate efforts to the exploration and development of the targets identified.
