Gammon Gold Co-founder Fred George Stepping Down

HALIFAX, Nova Scotia (AP) — Gammon Gold Inc. said Tuesday that Fred George is stepping down as president and chairman of the gold and silver producer he co-founded 14 years ago.

The company said Rene Marion, the current chief executive, will be appointed president and continue in the CEO role.

The Halifax, Nova Scotia-based company also said it expects to relocate its executive offices to Toronto by the end of this year, with plans to keep its non-executive staff in its current Halifax offices.

Gammon Gold said the move to Toronto puts its executives in the center of Canada's mining industry and capital markets.

In addition, Canek Rangel has resigned from Gammon Gold's board, effective immediately.

Gammon Gold said George's resignation is effective Oct. 13. Ron Smith, an independent director on Gammon Gold's board, will then become interim chairman while the board seeks a permanent replacement.

The company said George "led the transformation of Gammon Gold from a small exploration company to one of the largest gold and silver producers in Mexico."

He will remain an advisory consultant to the board on an as-needed, voluntary basis.

George said he was the company's new management team led by Marion had achieved the goal of putting the company on solid footing "and has delivered six consecutive quarters of positive operating cash flow."

Shares of Gammon Gold rose 39 cents, or about 4.9 percent, to $8.40 in midday trading.