Gryphon Minerals Ltd (ASX:GRY) will sell its Tijirit Gold and Akjoujt copper and gold projects in Mauritania to Algold Resources Ltd (CVE:ALG) for shares and cash of A$3 million, upon milestones being attained.
Gryphon will receive a 8,700,000 shares in Algold immediately, taking its shareholding to 10,666,666, or 14.9% of Algold’s issued capital as a result of Algold exercising the option to acquire 100% of the projects.
Gryphon will focus its funds on the 3.6 million ounce Banfora Gold Project in Burkina Faso while retaining upside to the Mauritanian projects from a significant shareholding in Algold.
Further tranched payments up to $3 million also leverage Gryphon to significant milestones and value accretion of these projects achieved by Algold.
The well-endowed Banfora Gold Project is a potentially low cost, high grade heap leach start-up operation, that is permitted for construction propelled by A$13 million in cash and listed investments of Gryphon.
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