Gryphon Resources Executes Agreement to Purchase Cruce Property in Arizona, USA
Apache Junction, Arizona – January 25, 2011 – Gryphon Resources Inc. (‘Gryphon’ or the ‘Company’) (Over-The-Counter Bulletin Board: GRYO) announced today it has finalized negotiations and executed the mineral exploration rights purchase agreement underlying a Letter of Intent it signed in December 2010.
The purchase agreement entails an option to purchase mineral exploration rights on the ‘Cruce Property’ located in Pinal County, south-central Arizona, USA with potential for gold and copper-porphyry reserves.
Concurrent with execution of the agreement (the ‘Cruce Agreement’), Gryphon fulfilled its first tier of obligations through a cash payment of $40,000 to the vendors and issuance to them of 100,000 restricted shares of Gryphon common stock. To complete exercise of the option, Gryphon must over three years: (i) pay the vendors a further aggregate sum of US$225,000; (ii) incur an aggregate of at least US$335,000 of expenditures on the Cruce Property; and (iii) issue the vendors a further aggregate 2,500,000 restricted common shares of Gryphon. Additionally, the vendors will receive an NSR payment of 3%, subject to a minimum royalty payment of US$250,000 per year upon commencement of mineral production.
“The execution of the Cruce Agreement is another milestone in fulfilling our strategic plans in Arizona,” said President and CEO Alan Muller, “We believe the 560 acre Cruce Property has very interesting potential for both gold and copper-porphyry exploration and is located close enough to our Arizona lithium project that we expect to yield some economies of scale during exploration. Progress on all fronts of our plans is going well and we’re looking forward to an active 2011.”
About Gryphon Resources
Gryphon Resources Inc. trades on the OTC-BB and Pink Sheets under the symbol GRYO. The Company was incorporated in Nevada in 2006 and has been involved in mineral exploration activities since inception. In 2010, Gryphon entered: the ‘L.G. Agreement’ to acquire the rights to 11 lithium exploration properties in south-eastern Arizona, USA; and in 2011 entered the ‘Cruce Agreement’ to acquire exploration rights to the 560 acre Cruce Property in south-central Arizona with potential for gold and copper-porphyry reserves. More information about Gryphon is available on our website: www.gryphonresourcesinc.com.
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Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue,” "budget," "may," "intend," "estimate," “project” and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
The company´s intent is to invest significant dollars over the next year to complete an economic pre-feasibility study on the L.G. Project to advance the project to the feasibility stage. Phase I of the planned 2011 program will include surface sampling, reconnaissance drilling and metallurgical testing. Phase II will incorporate detailed drilling, a continuation of metallurgical test-work and a pre-feasibility study. Both the first and second phases are expected to be completed by Spring 2013.