Home > Development, Diaspora News, Foreign Relations, Guyana > Infinito Gold Ltd. Signs Letter of Intent to Sell Guyanese Assets to Shoreham

Infinito Gold Ltd. Signs Letter of Intent to Sell Guyanese Assets to Shoreham

CALGARY –Infinito Gold Ltd. and Shoreham Resources Ltd. have entered into a non-binding letter of intent through which Shoreham can acquire 100% of the issued and outstanding common shares of Infinito’s subsidiaries in Guyana and Aruba which hold the Marudi Mountain and Paint Mountain, and Potaro mineral concessions as documented in the March 7th, 2007 agreements between Shoreham and Infinito.

The Company and Shoreham propose to complete the transaction through payments to Infinito of US$500,000 in cash and the issuance of 1,600,000 common shares of Shoreham to the Company. On August 17, 2010, Shoreham paid US$100,000 to the Company (the “Deposit Payment”), and upon closing Shoreham will pay to the Company the US$400,000 balance and issue 1,600,000 shares.

The Company will have the right to receive a 2% Net Smelter Returns (“NSR”) royalty for all future mineral production from the Marudi Mountain Project to a maximum of US$3,000,000. The Company will also receive from Shoreham a 2% NSR royalty for all future alluvial, saprolite and bedrock production from the Potaro Project, to a maximum of US$2,000,000.

Upon the completion and execution of a definitive purchase and sale agreement Infinito will transfer to Shoreham a 100% right, title and interest in and to the holding companies, free and clear of all encumbrances (except permitted encumbrances) and the interests of others. Furthermore, Infinito will retain no interest in or liability, including reclamation liability, associated with the holding companies other than the NSR royalties.

This agreement is subject to the TSX Venture Exchange approval, the completion and execution of a definitive sales agreement and the approval of the transaction by the Board of Directors of Infinito and Shoreham.

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