The company will place 40 million shares at 50c per share in two tranches.
Tranche 1 of 24.8 million shares to raise $12.4 million will be placed immediately, while tranche 2 will require shareholder approval.
The company will hold a shareholder meeting within seven weeks.
Gryphon said the placement was strongly supported by new and existing institutional investors, including a number of United Kingdom and North America-based international resource funds.
Funds will be used for further infill drilling at Banfora, as well as drilling high-grade extensions along strike.
The company added that the funds would give it the capability to assess ongoing land acquisition opportunities in west Africa.
Banfora has an inferred resource of 14 million tonnes grading 2.4 grams per tonne gold for 1.1 million ounces of gold.
Gryphon emerged from trading halt this morning and dropped half a cent to 53.5c.
