VANCOUVER, April 21 /PRNewswire/ - Guyana Frontier Mining Corp. ("Guyana Frontier") is pleased to announce that it has exercised its option to acquire a 100% interest in the Five Star - Case property (the "Property") in northwestern Guyana, South America. The Property consists of 14 mining permits totaling approximately 13,220 acres (5,350 hectares).
Guyana Frontier exercised its right to acquire the Property by fulfilling its obligations pursuant to a property option agreement between Case Development Company Limited ("Case") and Guyana Frontier, dated August 15, 2009 (see Guyana Frontier news releases dated August 18, 2009, August 21, 2009, and April 12, 2010).
Guyana Frontier acquired its 100% interest in the Property by paying to Case an aggregate of US$85,000 and by issuing a total of 400,000 common shares of Guyana Frontier. The Property is subject to a 3% net smelter returns royalty ("NSR") payable to Case. Guyana Frontier has the option, at any time prior to commencement of commercial production on the Property, to reduce the NSR to 0% by paying Case an aggregate amount of US$3,000,000. Pursuant to an option agreement between Guyana Frontier and Mulgravian Ventures Corp. ("Mulgravian"), Mulgravian can earn a 51% interest in the Property from Guyana Frontier.
A finder's fee consisting of US$5,000 cash and 40,000 common shares of Guyana Frontier was payable upon the option exercise to an arm's length third party.
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SOURCE Guyana Frontier Mining Corp.