Gryphon Gold (otcbb: gyph; tsx: ggn) announced Wednesday, May 19, 2011 that the Company has completed a $10 million secondary offering of common stock at an issue price of 12.5 cents per share. No warrants were included.

Co-book runners on the deal were Roth Capital in the U.S. and Acumen Capital in Canada. Acumen also sold its half of the underwriters' overalotment with Roth apparently still in the proccess.

Proceeds of the Offering are being used to place Gryphon Gold's Borealis Property in Mineral County Nevada into production. Construction of the leachpad and related mining equipment will begin immediately with gold expected to be placed on the pad in early September.

Gryphon will become the first U.S. junior gold producer in 2011 and once in full production, would rank 6th in the State of Nevada, according to State records.

Prior to the Underwriting, Gryphon had filed its updated 43-101 mining plan which indicates a more-than five-year life to the mine - based on current proven reserves of oxide ore, which is heapleach mineable.

The Company is expected to continue to identify more mineable ore in the coming years which could greatly extend the mine life as well as the annual level of production, currently estimated at somewhere near 40,000 ounces per year.

If current bullion prices hold, the company could see earnings of as much as 18 cents per share, before G&A and taxes - based on the first two years' production cost estimates. That makes its current market price a real bargain for mining investors in both Canada and the United States.

Disclosure: I am long in the shares, owning indirectly through my company 550,000 shares.