JOHANNESBURG (miningweekly.com) – ASX-listed Gryphon has completed a placement with ASX- and TSX-listed Teranga Gold, raising A$4.4-million for the development of the Banfora gold project, in Burkina Faso.
Gryphon, which is subject to a takeover from Teranga set to close in October, will use the funds of the placement to accelerate the completion of the updated engineering studies and resource and reserve drilling for a carbon-in-leach processing plant at the project.
“Drilling has started on Phase 2 of our drill programme and we expect a second rig on site shortly,” said MD Steve Parsons on Wednesday.
Gryphon aims to complete a fully optimised and de-risked feasibility study by the first half of 2017.
Under the placement, Teranga has subscribed for 21.2-million shares in Gryphon at A$0.206 a share, which is equivalent to Teranga’s offer price for Gryphon under the proposed scheme of arrangement announced in June.
As of July 19, Teranga owns about 5% of Gryphon’s shares.