Burkina Faso – ASX-listed junior gold developer Gryphon Minerals plans to divest from its Mauritanian assets, allowing it to focus its funds on the development of the Banfora gold project in Burkina Faso.
Gryphon has granted an option to TSX-V listed Algold Resources to acquire 100% of its interests in Mauritania, comprising the Saboussiri copper/gold project, Tijirit gold project and the Akjoujt copper/gold project.
The option is for a total consideration of up to A$4.51 million including a 14.9% interest in Algold’s issued shares (worth A$1.3 million) and a further A$3.2 million on achievement of certain milestones.
As part of the divestment Gryphon Minerals will retain a stake in the Canadian listed entity allowing Gryphon to participate in any upside through its significant shareholding and milestone payments.
The consideration for the granting of the option is the issue of C$250 000 worth of Algold Resources shares which are non-refundable.
Algold may exercise the option at any time within 90 days of the signed option agreement (29 October 2015) by issuing further shares that together with the initial shares would result in Gryphon holding 14.9% of Algold’s issued and outstanding shares.
In addition to the initial consideration, Gryphon is entitled to C$1.5 million, payable at the option of Algold either in cash or Algold common shares or the date that is 90 days after Algold announces that there is an NI 43-101 compliant mineral resource of 500 000 ounces on a gold equivalent ounces basis at any of the properties or combination thereof and an additional C$1.5 million, payable within 90 days of achieving an NI 43-101 compliant mineral resource of 1Moz on a gold equivalent ounces basis at any of the properties.