THE BOURSE WHISPERER: Burkina Faso trailblazers Gryphon Minerals (ASX: GRY) has raised $31.3 million via an institutional share placement to allow the advancement of the company’s Banfora gold project.
Gryphon will issue 52.2 million fully paid ordinary shares to existing and new Australian, European and North American institutional investors at an issue price of 60 cents per share.
Banfora gold project, Burkina Faso. Source: Gryphon Minerals
The company is currently preparing a Definitive Feasibility Study on the Banfora gold project based on a 3.5 million tonnes per annum operation.
It also has underway a detailed review on a staged 2 million tonnes per annum ‘start up’ operation that could be up scaled to a 4 million tonnes per annum operation.
Gryphon indicated it expects to be able to make a final decision on the preferred DFS case in the coming months.
“Proceeds from the placement will be primarily used to advance the initial development of the Banfora gold project through ordering of long lead items including an initial SAG mill payment,” Gryphon Minerals said in its ASX announcement.
“The proceeds will also be applied to preliminary site and earth works as well as to continue resource and reserve definition drilling.
“In addition, funds will also be used to continue pre-feasibility studies on the potential Heap Leach, exploration work at the company’s gold projects in Mauritania, as well as to meet working capital requirements.”