Vancouver – In a move to become a major player in Nevada gold exploration, Gryphon Gold (GGN-T, GYPH-O) has inked a definitive purchase agreement to acquire private company Nevada Eagle Resources that will give it ownerships in 54 separate gold projects.
Nevada Eagles gold property portfolio cumulatively covers more than 180 sq. km throughout the major Nevada mineral trends with a few located in contiguous states.
The terms of the purchase have Gryphon paying stakeholders of Nevada Eagle US$12 million, with US$2.5 million coming as cash, issuing 4.5 million Gryphon shares and a US$5-million convertible note due March 31, 2010. The note is convertible into Gryphon shares at US$1.00 in the first 12 months, US$1.25 over the following 12 months; US$1.50 thereafter and US$1.75 if converted on March 30, 2010 due date.
Twenty four of the new projects are situated in western Nevadas Walker Lane Trend where Gryphons flagship Borealis gold project is located. Borealis hosts a measured and indicated resource of 37 million tonnes grading one gram gold per tonne (about 1.2 million contained oz.). A further 28 million inferred tonnes of 0.7 gram gold has also been tabled for about 609,000 contained oz.
Within the Gryphons acquisition package, several of the more advanced projects (such as Golden Arrow, Monte Cristo, Regent, Red Rock and Rosebud) have had work programs completed leading to planned National Instrument 43-101 technical reports.
Gryphon also points out that 26 of the properties are under option, or farmed out, and actually generate a positive cash flow net of carryings costs for the entire property portfolio.
Subject to regulatory approval, Gryphons acquisition of Nevada Eagle is anticipated by mid-September.
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