Gryphon Gold Corporation (TSX:GGN, OTCQB:GYPH) announced that it has signed a joint venture with Waterton Global Value L.P.
As quoted in the press release:
Under terms of the Agreement, Waterton will convert $17.0 million, or about two-thirds, currently outstanding under its Senior Credit Facility with Gryphon Gold for a 60% ownership interest in the Company’s subsidiary, Borealis Mining Company . Gryphon Gold will own a 40% interest in Borealis and the amount due under the Senior Credit Facility will be reduced to $8.0 million, which is to be repaid in monthly installments commencing on January 31, 2013 through the end of the term in November 2014. The reduction of the amount outstanding under the facility will reduce the Company’s’ monthly debt payments from $1.4 million, by approximately $1.0 million, to $0.4 million.
Gryphon’s CEO and Interim CFO, James O’Neill Jr., said:
Waterton has been a strong supporter of Gryphon Gold and an integral part of the advancement of the Borealis Property. This transaction provides the Company with a strengthened capital structure, and importantly, adds Waterton as a joint venture partner, bringing a wealth of technical expertise and successful gold mining experience. With their partnership, we expect to significantly increase mining efforts and current production activities, including adding additional crushing capabilities and hauling equipment.
To view the whole press release, click here.