Wednesday, 13th February 2008 (1348 views)

Gryphon Gold has signed a letter of intent with American Bonanza to merge the company into a wholly-owned subsidiary, it has been announced.

Gryphon said the move was part of a strategy to increase its gold resources through acquisition, exploration and joint ventures.

Both companies said they believe the merger will create a conveyor belt of projects for development, result in greater market interest and reduce administration costs.

It will also bring the development of two properties that are nearing production - Gryphon Gold's Borealis project in Nevada and American Bonanza's Copperstone site in Arizona - under a single banner.

American Bonanza's on-going work on the Northway and Vezza gold deposits, as well as its exploration in the Casa Berardi gold district and at La Martinere in Quebec could add further gold resources.

Tony Ker, Gryphon Gold's chief executive, said: "I believe that this merger will strengthen the company's resource, management and financial base."

Gryphon Gold began exploration in Nevada in 2003. Its Borealis property is estimated to have a resource of over 1.9 million ounces of gold.

 

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