GRYO closed the market with a 3.23% decline at $0.15, but considering that a significant jump up was made on Friday that decline is maybe just a minor correction. The trading volume was 7.21 million shares, or slightly below the average for the stock.
Last week, Gryphon Resources issued two more updates on its new project in Arizona. The second one on Friday reported that the initial due diligence on the property has confirmed the possibility for potentially economic concentrations of Lithium, and the first one on Monday announced that the company has received approvals from the Arizona State Land Department to conduct the exploration works.
At the beginning of the month, the new project in Arizona named the Cruce Property was even confirmed through an SEC filing, which however confirmed only that the company has signed a Letter of Intent to acquire an option to purchase the mineral rights. To exercise that option, Gryphon will have to pay at least $600,000 in payments to the vendors and in expenditures on the property, further it has to issue 2.6 million restricted shares of its common stock to the vendors.
Even with the recently announced private placement for $320,000 in one of the previous press releases the company still does not have enough cash to exercise the option. Also, as GRYO stock gets often shorted the share price performance does not seem related to the company’s progress or to its news announcements. Another fact is that GRYO was promoted by at least four promoters at the beginning of the month, the disclosed compensation consisting of $5,000 in cash.
