Vancouver — In a move that will position it as a major player in Nevada gold exploration, Gryphon Gold (GGN-T, GYPH-O) has inked an agreement to acquire private company Nevada Eagle Resources, which will give it stakes in 54 separate gold projects.
Nevada Eagle’s property portfolio cumulatively covers more than 180 sq. km throughout the major Nevada mineral trends, with a few projects located in adjoining states.
Under the deal, Gryphon will pay US$12 million to stakeholders of Nevada Eagle, consisting of US$2.5 million in cash, 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 the March 30, 2010, due date.
Twenty-four of the new projects are situated in western Nevada’s Walker Lane trend, where Gryphon’s flagship Borealis gold project is located. Borealis hosts a measured and indicated resource of 37 million tonnes grading 1 gram gold per tonne (about 1.2 million contained ounces), plus 28 million inferred tonnes of 0.7 gram gold (for about 609,000 contained ounces).
Several of Nevada Eagle’s 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 says that 26 of the properties are under option, or farmed out, and generate a positive cash flow net of carrying costs for the entire property portfolio.
Subject to regulatory approval, the acquisition is anticipated to close by mid-September.
Gryphon shares gained several cents on the acquisition news to 87. The stock has a 52-week trading range of 72-$1.69.
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