(Ecofin Agency) - Junior gold developer, Gryphon Minerals, decided to exit Mauritania after Algold exercised an option over its interest in the Tijirit gold and Akjoujt and Saboussiri copper and gold projects. The firm holds 100% of Tijirit and Akjoujt mines and 60% of Saboussiri project.

Gyphon, after signing the option agreement will receive A$4.5 million, including 8.7 million Algold shares which, added to already acquired shares. It will thus hold 10.666 million shares or 14.91% of the firm’s capital.

Additionally, Gryphon will receive A$1.5 million in cash or shares, within 90 days of Algold reporting a mineral resource of 500,000 oz of gold, or within 15 months after completion of transaction, or when Mauritian authorities renew exploitation licence. It will also receive C$1.5 million, 90 days after reporting a mineral resource of 1,000,0000 oz of gold on the projects.

Gryphon said its exit from Mauritania will allow it to focus on the Banfora gold project, in Burkina Faso, while allowing it to obtain a significant share in a Canadian entity.

Banfora project which includes 9 exploration licences covering a total of 1,152 km2 will require an investment of $210 million.

Louis-Nino Kansoun