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.
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SOURCE Guyana Frontier Mining Corp.