Gryphon Resources, www.gryphonresourcesinc.com – the lithium-focused mineral exploration firm, reported completion of a $320k private placement today, securing stage one operating capital for their strategic exploration initiative in Arizona.
The buzz surrounding lithium is intense. As a key strategic resource for the 21st century, lithium is absolutely vital for batteries in all kinds of electronic devices, from cell phones to laptops and electric vehicles.
President and CEO of GRYO, Alan Muller, recognizes the vast potential for domestic lithium production and views the success of fund raising efforts as a clear indicator of strong demand from the market for the company’s production initiative.
Muller explained that the company has deftly “re-focused” over the last nine months, quietly working towards the execution of this private placement, which provides:
• Working capital spanning several months
• A balance sheet-strengthening debt-to-shares conversion component
• Funding for stage one of lithium exploration in Arizona
Muller cited a $28.4M award (American Recovery and Reinvestment Act of 2009) to Chemetall Foote’s Clayton Valley lithium production facility in Nevada, as a firm stand by the US Government to support domestic lithium production.
Muller went on to note the striking similarities between Chemetall Foote’s facility and GYRO’s 640-acre L.G. Property in Arizona, suggesting that the company is sitting on a potentially major new source for satisfying skyrocketing US demand.
Muller sees the Arizona property as having the potential for very large brine deposits, with viable lithium concentrations and foresees a massive demand squeeze on the horizon for lithium:
• All the major automakers are announcing plans to build Li-ion (lithium-ion) vehicles; demand in this sector is expected to increase fivefold by 2012
• Over 60% of cell phones and 90% of laptops use lithium batteries
• Global lithium battery market exceeds $4B/year
Rapidly positioning itself to become a major domestic supplier of this critical strategic resource is a solid move for GRYO, whose shareholders stand to reap rich rewards as future US demand for lithium advances on strong uptake from the industrial sector.
Aggregate proceeds of $320k are based on private placement sale of some 6.4M restricted common shares at $0.05/share, issued pursuant to Securities Act of 1933, Regulation S.
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