Wednesday 20th March 2019

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Gammon Gold and Capital Gold announce $288M Merger

Gammon Gold Inc. GAM:CA and Capital Gold Corporation CGC:CA have entered into a definitive merger agreement in which Gammon will offer to acquire all of the issued and outstanding common shares of Capital Gold. The total consideration for the purchase of 100% of the fully diluted in-the-money shares of Capital Gold is approximately $288 million. 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 of $0.79 per share.

President/CEO of Gammon Gold Rene Marion commented, “We anticipate that this transaction will transform Gammon Gold into a well diversified Mexican gold producer with an attractive suite of operating assets and an enhanced pipeline of development and exploration stage projects that will increase our exposure to gold in a positive gold price environment. Following the transaction, we anticipate Gammon Gold will be among the lowest cost producers in the industry with an exciting organic growth profile.”

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Rene Marion,
CEO, Gammon Gold Inc.

or Kelly Cody,
Investor Relations, Capital Gold Corp.

by Ted Niles

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