23/11/2011 - 10:25

Gryphon to raise $68.5m for Banfora

23/11/2011 - 10:25

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Gryphon to raise $68.5m for Banfora

Gryphon Minerals has completed $58.5 million share placement and $10 million share purchase plan to fund a definitive feasibility study and accelerated exploration at its flagship Banfora gold mine in Burkina Faso.

The Perth-based gold hopeful announced today it would issue 45 million shares to existing and new investors at $1.30 per share.

Also, Gryphon said it would launch a $10 million share purchase plan, open to all shareholders, at the same price as the placement.

Gryphon managing director Steve Parsons said the company was pleased with the response from the market.

“Despite the challenging short-term market environment, the strong backing we received from our current institutional shareholder base demonstrates the support for the Company’s strategy to become a significant near - term West African gold company,” Mr Parsons said in a statement.

“These funds will allow us to continue on the path to developmetn at our flagship Banfora gold project. They will also allow Gryphon to maintain an aggressive exploration programme in highly prospective and under-explored regions of West Africa.”

Euroz Securities and Paradigm capital acted as joint lead managers for the placement, while RBC Capital Markets, Canaccord BGF and Global Hunter Securities are acting as co-managers to the placement.

At 10:21AM (WST) Gryphon's stock was down 10 per cent, to $1.34.

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