VANCOUVER, May 19 /PRNewswire-FirstCall/ - Guyana Frontier
Mining Corp. ("Guyana Frontier")
is pleased to announce an amendment (the "Amendment") to the Guiana
Shield property option and joint venture agreement (the
"Agreement") between Guyana Frontier and Mulgravian Ventures
Corporation ("Mulgravian") a non-arm's length private B.C. company,
dated May 21, 2010, whereby the
Otomung property ("Otomung") will now be included in the
Agreement's definition of the Guiana Shield property (the
"Property").
Otomung consists of two large scale prospecting
licenses, which cover an area of approximately 25,599 acres (10,360
hectares). Under the terms of the Agreement and Amendment the
Property will now be comprised of 5 portfolio groups, which consist
of 19 large scale prospecting licenses and 12 medium scale
prospecting permits, and encompasses a cumulative area of 238,281
acres (96,431 hectares) in northwestern Guyana, South
America. Guyana Frontier has two underlying property option
agreements with Guiana Shield Resources Inc. ("Guiana Shield"),
whereby Guyana Frontier has the
right to acquire a 100% interest in the Property subject to a net
smelter returns royalty. For further information see Guyana
Frontier news releases dated April 6,
2009, May 28, 2009,
January 5, 2010, and November 29, 2010.
Pursuant to the terms of the Agreement,
announced in Guyana Frontier's
news releases of April 27, 2009 and
June 10, 2010, Guyana Frontier has
granted Mulgravian the option to earn a 51% working interest in the
Property by:
- making aggregate exploration expenditures and certain property
acquisition payments to Guiana Shield totalling US$5,000,000 over a four-year period from the
date of TSX-V acceptance, being June 10,
2010;
- purchasing an aggregate of 2,000,000 units (the "Units") of
Guyana Frontier by way of private
placement (the "Private Placement") for gross proceeds of
CDN$600,000; and
- exercising all of the common share purchase warrants (the
"Warrants") comprising the Units for further gross proceeds to
Guyana Frontier of CDN$1,500,000.
The Private Placement closed on May 13, 2009, with the first tranche of Warrants
being exercised on May 11, 2010 for
proceeds of CDN$900,000 to Guyana
Frontier. Further details of the Private Placement, the terms of
the Units and the Warrants, and the exercise of certain Warrants
can be found in Guyana Frontier's
news releases of April 28, 2009,
May 20, 2009, and May 28, 2010.
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.
SOURCE Guyana Frontier Mining Corp.