Teranga Gold Completes 5% Placement in Gryphon Minerals
Through the placement, Teranga has subscribed for 21.2 million fully paid ordinary shares of Gryphon for A$4.4 million.
Gold miner Teranga Gold Corporation (ASX:TGZ) has announced that it has acquired, in the form of a placement, a 5% interest in Gryphon Minerals Ltd (ASX:GRY).
Through the placement, Teranga has subscribed for 21.2 million fully paid ordinary shares of Gryphon for A$4.4 million, at a placement price of A$0.206 per Gryphon share. The price was equivalent to Teranga’s offer price for one Gryphon share under the proposal. As a result of the placement, Teranga owns approximately 5% of Gryphon’s issued shares.
Teranga CEO and President Richard Young commented on the acquisition: “In order to maximize our return and mitigate project risk, construction at Banfora needs to commence following next year’s rainy season. The capital from the placement will be used immediately to start the resource conversion drill program and plant optimization studies required to complete a fully optimized and de-risked feasibility study by the first half of 2017 and to update the tailings storage facility design and relocation action plan required as a result of the decision to move forward with a carbon-in-leach plant.”
Mr Young further added that the with the help of the Gryphon acquisition, construction at Banfora may commence in late 2017, with a targeted first pour during the first half of 2019.
Gryphon Minerals Ltd (ASX:GRY) is an Australian gold producer, with a particular focus on a multitude of gold projects within West Africa.
Their portfolio is particularly focused on 2 projects in West Africa. With the first one being the Banfora project in Burkina Faso, being based within one of the largest gold producing nations in Africa. Moreover, the second one being the Tijirit project in Mauritania. Both projects are 100% owned by Gryphon, and have contiguous exploration licenses that cover over 1000km2.
Since the start of the year, GRY has gained 280%.
Author: Ben Khouri
Jul 21, 2016
Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.