Perth, Australia — MININGREVIEW.COM — 01 July 2010 – Gryphon Minerals Limited and Shield Mining Limited have announced that Gryphon intends to acquire 100% of Shield. Following an Implementation Agreement, the two companies have agreed to effect the transaction by way of an off-market takeover bid under which Gryphon will bid for all of the shares on issue in Shield on the basis of one Gryphon share for every three Shield shares.
A letter to the Australian Stock Exchange confirmed that the transaction would create a well funded, significant, West African-focused gold exploration company.
It revealed that the combined entity would hold a dominant and strategic land position of over 3 600sq km in two highly prospective and under-explored countries, Burkina Faso and Mauritania.
First was an inferred resource of 14Mt @ 2.4g/t for 1.1Moz at the Banfora gold project in Burkina Faso, and second was the Tijirit project, with drill-ready targets adjacent to Redback Mining’s world class Tasiast gold mine in Mauritania.
The statement went on to say that, in addition to these two excellent prospects, the new company had a large pipeline of highly prospective exploration targets, as well as a combined cash position of almost US$20 million (R150 million) which would enable aggressive exploration.
Gryphon is also offering to acquire Shield’s 21.3 million 20 cent August 2011 options on the basis of one ordinary Gryphon share for every eleven August 2011 Options.
The Shield board has unanimously recommended the share and option offers, and the directors intend to accept the share and option offers in the absence of a superior proposal.