01/12/2010 - 11:11

Gryphon to take stake in Tawana

01/12/2010 - 11:11

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Subiaco-based Gryphon Minerals has reached a deal to take a 15 per cent stake in Victorian-based Tawana Resources, which has a number of mineral permit applications in West Africa.

Gryphon to take stake in Tawana

Subiaco-based Gryphon Minerals has reached a deal to take a 15 per cent stake in Victorian-based Tawana Resources, which has a number of mineral permit applications in West Africa.

"Under the agreement, Gryphon will assist Tawana with the identification, acquisition and exploration of mineral permits in West Africa, which are outside of Gryphon's core geographical growth strategy," Gryphon said in a statement to the Australian Securities Exchange.

"Gryphon will also assist Tawana to establish itself in West Africa and provide high level technical, operational and logistical advice."

Tawana CEO Len Kolff said, "The support of Gryphon's experienced technical team, complements Tawana's existing technical capabilities and puts us in a strong position for exploration success in West Africa."

"Liberia has significant potential to host large, world class deposits of gold, copper, iron ore and other minerals yet it remains largely underexplored."

As consideration for entering into the agreement and the acquisition of the permits, subject to shareholder approval, Tawana will issue Gryphon 100 million fully paid ordinary shares, representing about 15 per cent of the issue capital on an undiluted basis.

Tawana will also offer Gryphon the right to nominate one nominee to the Board of Directors.

 

 

See company statement below:

The Directors of Tawana Resources NL (ASX:TAW) are pleased to announce a strategic alliance agreement with West African gold explorer, Gryphon Minerals Limited (ASX:GRY) and the acquisition of several highly prospective mineral permit applications in Liberia, West Africa.

Gryphon has been exploring in West Africa for over half a decade and as part of Tawana's expansion into West Africa the strategic alliance provides Tawana with access to Gryphon's experienced exploration and technical team and operational and logistical expertise.

Tawana has considerable experience operating in West Africa, through its CEO Len Kolff, who was employed by the Company in July 2010. Len joined Tawana having worked over the past decade at Rio Tinto, where he was involved in a range of high profile projects including the Simandou iron ore project in Guinea, West Africa. Len's
responsibilities have encompassed a broad range of disciplines, including the design, implementation and supervision of multi-commodity exploration programs throughout Africa.

West Africa is the fastest growing gold producing region in the world and while Liberia has significant potential to host large, world class deposits of gold, copper, iron ore and other minerals it remains largely under explored.

Strategic Alliance
Under the agreement, Gryphon will assist Tawana with the identification, acquisition and exploration of mineral permits in West Africa, which are outside of Gryphon's core geographical growth strategy. Gryphon will also assist Tawana to establish itself in West Africa and provide high level technical, operational and logistical advice.

Key points and rationale of the Alliance include:
 Gryphon to assist Tawana with exploration, operational and logistical activities in West Africa;
 Gryphon will provide high level technical advice in relation to exploration programs of Tawana's West African minerals interests;
 Gryphon to assist Tawana in the acquisition of mineral permits in West Africa, which are outside Gryphon's core geographical growth strategy;
 Gryphon will hold a strategic stake in Tawana, an African focused exploration company with extensive technical and operational experience in and throughout West Africa and Africa;
 Gryphon will continue to focus on the aggressive exploration and development of its Banfora Gold Project in Burkina Faso and the Tijirit Gold Project in Mauritania while maintaining exposure to Liberia and other parts of West Africa for gold and other minerals;
 Tawana's management and Board has exploration, operational and logistical experience in Africa;
 The transaction provides both companies with geographical and mineral diversification; and
 Both Gryphon and Tawana are well supported by key broking houses supportive of West Africa and have a proven ability to raise funds.

Len Kolff, CEO of Tawana said "The support of Gryphon's experienced technical team, complements Tawana's existing technical capabilities and puts us in a strong position for exploration success in West Africa" .

"Liberia has significant potential to host large, world class deposits of gold, copper, iron ore and other minerals yet it remains largely underexplored".

Gryphon will continue its aggressive exploration programs in Burkina Faso and Mauritania. "Through our strategic interest in Tawana, Gryphon is able to gain exposure to potential world class discoveries in gold and as importantly other minerals, in other West African countries while we maintain our focus at Banfora and Mauritania" said Steve Parsons, Managing Director.

"The alliance with Tawana combines the exploration and technical expertise of both companies and effectively delivers to Gryphon a low risk, early stage exploration arm".

Acquisition of Liberian permits
As the first acquisition under the alliance Tawana will acquire highly prospective mineral permit applications covering over 3,800km2 of ground in Liberia.

Areas under application cover previously unexplored Archean and Birimian greenstone belts with sequences of banded iron formations, volcanoclastics and mafic rock types that are highly prospective for gold mineralisation.

There are reports of numerous artisanal workings along the belts which have had no modern day gold exploration undertaken on them. The mineral permit applications are for both gold and base metal exploration.


Consideration
As consideration for entering into the agreement and the acquisition of the permits, subject to shareholder approval, Tawana will issue Gryphon 100,000,000 fully paid ordinary shares, representing approximately 15% of the issued capital on an undiluted basis and offer Gryphon the right to nominate one nominee to the Board of Directors.

 

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