CARSON CITY, Nev., April 5, 2013 (GLOBE NEWSWIRE) -- Gryphon Gold Corporation (the "Company" or "Gryphon Gold") (TSX:GGN) (OTCBB:GYPH), a company focused on its joint venture interest in the gold Borealis Oxide Heap Leach Project in Nevada (the "Borealis Property"), is providing an update on its Senior Secured Gold Stream Facility (the " Credit Facility") with Waterton Global Value L.P. (" Waterton"). Under the terms of the Credit Facility, monthly principal, interest and premium payments are required to be made on the last day of each month until November 2014. The Company has the option of satisfying the monthly principal and premium payments in cash, by delivery of physical gold or by the assignment to Waterton of an interest in Borealis Mining Company LLC (" Borealis") in such amounts or number determined in accordance with the requirements of the credit agreement, as amended, relating to the Credit Facility (the " Credit Agreement"). For the payment due on March 31, 2013, the Company assigned to Waterton 80,000 membership units in Borealis and for the payment due February 28, 2013, the Company assigned to Waterton 40,000 membership units of Borealis. As a result, the Company now owns a 38.8% interest in Borealis (3,880,000 membership units) and Waterton owns a 61.2% interest.
Under the terms of the Credit Agreement, the payments due in each of April and May 2013 may be satisfied by the assignment of 80,000 membership units in each month (2% of the Company's initial 40% interest in Borealis, representing 0.8% of Borealis, in each month); the payments due in June, July, August and September 2013 may be satisfied by the assignment of 120,000 membership units in each month (3% of the Company's initial 40% interest in Borealis, representing 1.2% of Borealis, in each month); the payments due in October, November, December 2013 and January 2014 may be satisfied by an assignment of 160,000 membership units in each month (4% of the Company's initial 40% interest in Borealis, representing 1.6% of Borealis, in each month); the payments due in February, March, April, May, June and July 2014 may be satisfied by the assignment of 200,000 membership units in each month (5% of the Company's initial 40% interest in Borealis, representing 2% of Borealis, in each month); and the payments due in August, September, October and November 2014 may be satisfied by the assignment of 240,000 membership units in each month (6% of the Company's initial 40% interest in Borealis, representing 2.4% of Borealis, in each month). The monthly payments may also be satisfied in cash or gold in an amount determined in accordance with the Credit Agreement.
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