TORONTO, and NEW YORK, NY, Oct. 1 /PRNewswire-FirstCall/ – Gammon Gold Inc. (“Gammon Gold”) (NYSE: GRS, TSX: GAM) and Capital Gold Corporation (“Capital Gold”) (TSX and NYSE AMEX: CGC) have entered into a definitive merger agreement pursuant to which Gammon Gold will offer to acquire all of the issued and outstanding common shares of Capital Gold in a cash and share transaction (the “Acquisition”). The total consideration for the purchase of 100% of the fully diluted in-the-money shares of Capital Gold is approximately US$288 million or US$4.57 per Capital Gold share based on Gammon Gold’s closing price on September 24, 2010 on the NYSE.The Acquisition has the unanimous support of both companies’ Boards of Directors and Officers and strengthens Gammon’s position as a leading Mexico focused, growing gold producer.
Under the terms of the Acquisition, each common share of Capital Gold will be exchanged for 0.5209 common shares of Gammon Gold and a cash payment in the amount of US$0.79 per share. Based on the yada yada continues here
“Yes, Otto. Well we were fed up with you poking fun at us and pointing to the fact that we couldn’t make a profit to save our skins, so we just went ahead and did the obvious thing. We bought a profitable mine.”