Proposes Increased Offer of 0.5209 Gammon Shares and
/PRNewswire-FirstCall/ - Gammon Gold Inc. ("Gammon") (TSX:GAM) and (NYSE:GRS): Gammon today proposed to amend its merger agreement with Capital Gold to increase the cash component of the merger consideration to be paid to Capital Gold's stockholders by
per share to
. If Capital Gold accepts Gammon's proposed amendment and Capital Gold's stockholders approve the merger involving Gammon Gold, Capital Gold's stockholders will receive 0.5209 Gammon shares and
in cash for each share of Capital Gold common stock that they hold.
The original Gammon deal is unanimously supported by Capital Gold's Board of Directors and has separately been endorsed by the two leading independent proxy advisory firms, ISS and Glass Lewis.
Commenting on the proposed amendment,
, President and CEO of Gammon, stated: "Our proposed increase in the merger consideration is firm and final. The merger with Gammon is the only effective transaction in front of Capital Gold stockholders to be voted on.
recent proposed offer does nothing in our view to increase the attractiveness of their company or to reduce the considerable risk and timing delay of their proposed hostile transaction. Ultimately, the decision rests with Capital Gold stockholders, combine with Gammon or forego the premium and remain an independent company."
About Gammon Gold
Gammon Gold Inc. is a mid-tier gold and silver producer with properties in
. Gammon's flagship Ocampo Property is located in Chihuahua State. Gammon also owns the suspended
mine in Guanajuato State and the Guadalupe y Calvo development property in Chihuahua State. In 2010 Gammon completed option purchase agreements to acquire the Los Jarros and Venus Projects located directly north and east of the
mine, the Mezquite Project in Zacatecas State, and has signed a binding Letter of Intent to joint venture into the
gold project in Durango State. The Company has made strategic investments in Golden Queen Mining Co. Ltd. and Corex Gold Corporation. The Company's Executive Office is located in
For further information please visit the Gammon gold website at