News Bulletin

Gryphon takes control of Shield.

Gryphon Minerals Limited (“Gryphon”) (ASX: GRY) has announced it has received 94% acceptances relating to its takeover of fellow West African gold focussed company, Shield Mining Limited.
 
Gryphon will now move to compulsory acquire all remaining shares in Shield. The market has viewed the takeover with interest. The implied price, approximately in the range of A$20-25 million depending on the final Gryphon share price, might seem a lot for a pure exploration play but a quick look at Shield’s key properties indicates why Gryphon, which has already established itself with a significant presence in West Africa, was so keen to secure its prize.
 
Shield’s main play is the Tijirit Project which may not sound familiar. A review of the location plan however shows you it is directly along strike from Red Back’s (soon to be gobbled up by Kinross Gold) Tasiast Gold Mine, one of Africa’s newest mines, which has 5.0Moz of gold in reserves already and is widely tipped to be heading well north of that figure in the near term future.   Not only is Tijirit along strike but it sits hosted in similar rock types to Tasiast and is almost completely underexplored. Early Shield drill results yielded 6m @ 17.63g/t Au from 10m, 6m @ 10.47g/t Au from 16m and 2m @ 24.90g/t Au from 56m.
 
So the acquisition of Shield may look like a very cheap deal in the not too distant future!!
 
Source: Relevant Company’s websites.

     

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