PERTH (miningweekly.com) – Junior gold developer Gryphon Minerals will be exiting Mauritania after TSX-V-listed Algold Resources exercised an option over Gryphon’s interest in the Tijirit gold and Akjoujt copper/gold projects.
Gryphon in October last year signed an option agreement with Algold Resources, which would acquire the Saboussiri copper/gold project, as well as the Tijirit and Akjoujt projects, for A$4.5-million, including a 14.9% interest in Algold.
Gryphon told shareholders on Monday that once the final documentation has been completed, the company would receive about 8.7-million shares in Algold, bringing its total shareholding to 14.9%.
In addition, Gryphon would also receive C$1.5-million in cash or shares within 90 days of Algold reporting a mineral resource of 500 000 oz of gold, or 15 months after the completion of the transaction, or on the date on which the Mauritanian authorities renew the tenement licence.
A further C$1.5-million would be payable within 90 days of a mineral resource of some one-million ounces of gold equivalent being declared at any of the properties.
Gryphon noted that the exit from Mauritania allowed the company to focus its funds on the Banfora gold project, in Burkina Faso, while allowing the junior to obtain a significant stake in a Canadian entity.
The Banfora project would require a capital investment of $210-million, and would consist of a two-million-tonne-a-year heap leach start-up operation, with the potential to expand by adding a conventional one-million-tonne-a-year carbon-in-leach processing plant.