TSX: GAM / NYSE: GRS / BSX: GL7
TORONTO, Aug. 19 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and
NYSE: GRS): announced today that its Board of Directors has approved
the adoption of a shareholder rights plan agreement (the "Plan")
effective August 19, 2010 (the "Effective Date"). The Plan is designed
to ensure that Gammon's shareholders are treated fairly in the event of
a take-over bid for Gammon's common shares and that Gammon's Board of
Directors and shareholders will have adequate time to evaluate any
unsolicited take-over bid and, if appropriate, evaluate and pursue other
alternatives to maximize shareholder value.
The Plan was not adopted in response to any actual or threatened
take-over bid or other proposal from a third party to acquire control of
Gammon and is not intended to block take-over bids. The Plan is similar
to shareholder rights plans adopted by other Canadian companies.
The plan has been conditionally accepted for filing by the Toronto Stock
Exchange subject to shareholder approval. The Plan must be confirmed by
the shareholders within six months from the Effective Date and Gammon
intends to seek shareholder approval of the Plan at a special meeting of
shareholders to be held within such time frame. The Plan is also subject
to certain other regulatory approvals, including approval by the New
York Stock Exchange.
At the close of business on the Effective Date, one right (a "Right")
will be issued and attached to each common share of Gammon outstanding
at that time and to each common share issued after the Effective Date.
About Gammon Gold
Gammon Gold Inc. is a mid-tier gold and
silver producer with properties in Mexico. Gammon's flagship Ocampo
Property in Chihuahua State achieved commercial production in January
2007. Gammon Gold also owns the suspended El Cubo mine in Guanajuato
State and has the promising Guadalupe y Calvo development property in
Chihuahua State. Gammon recently completed option purchase agreements to
acquire the Mezquite Project in Zacatecas State, Mexico and the Venus
Project located north of the Ocampo mine. Gammon also recently signed a
Letter of Intent to acquire the Los Jarros Project in Chihuahua State.
Since 2008, the Company has increased its Mexican land position by over
59% and has made strategic investments in Golden Queen Mining Co. Ltd.
and Corex Gold Corporation. The Company's Executive Office is located in
Cautionary Note to US Investors - The United States Securities and
Exchange Commission permits US mining companies, in their filings with
the SEC, to disclose only those mineral deposits that a company can
economically and legally extract or produce. This press release uses
certain terms, such as "measured," "indicated," and "inferred"
"resources," that the SEC guidelines strictly prohibit US registered
companies from including in their filings with the SEC. US Investors are
urged to consider closely the disclosure in Gammon Gold's Annual Report
on Form 40-F/A, which may be secured from Gammon Gold, or from the SEC's
website at http://www.sec.gov/edgar.shtml.
No stock exchange, securities commission or other regulatory
authority has approved or disapproved the information contained herein.
Certain statements included herein, including information as to the
future financial or operating performance of the Company, its
subsidiaries and its projects, constitute forward-looking statements.
The words "believe", "expect", "anticipate", "contemplate", "target",
"plan", "intends", "continue", "budget", "estimate", "forecast", "may",
"will", "schedule" and similar expressions identify forward-looking
statements. Forward-looking statements include, among other things,
statements regarding the carrying value of El Cubo, its financial
exposure to litigation, targets, estimates and assumptions in respect of
gold and silver production and prices, operating costs, results and
capital expenditures, mineral reserves and mineral resources and
anticipated grades, recovery rates, future financial or operating
performance, margins, operating and exploration expenditures, the
duration of the suspension of operations at El Cubo and our ability to
reopen such operations, the financial and operating effects of the
suspension of operations at El Cubo, costs and timing of completion of
the Ocampo expansion program and improvements to the heap leach pad,
costs and timing of the development and commencement of production of
new deposits, costs and timing of construction, costs and timing of
future exploration and reclamation expenses including, anticipated 2010
results, operating performance projections for 2010, our ability to
fully fund our business model internally, 2010 gold and silver
production and the cash and operating costs associated therewith, the
ability to achieve productivity and operational efficiencies, the
ability to access grid power at Ocampo, further reduction in the open
pit stripping ratio and the timing of each thereof. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by the Company, are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies.
Many factors could cause the Company's actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, the Company. Such factors include,
among others, known and unknown uncertainties and risks relating to
additional funding requirements, reserve and resource estimates,
commodity prices, hedging activities, exploration, development and
operating risks, illegal miners, political and foreign risk, uninsurable
risks, competition, limited mining operations, production risks,
environmental regulation and liability, government regulation, currency
fluctuations, recent losses and write-downs, restrictions in the
Company's loan facility, dependence on key employees, possible
variations of ore grade or recovery rates, failure of plant, equipment
or process to operate as anticipated, accidents and labour disputes.
Investors are cautioned that forward-looking statements are not
guarantees of future performance and, accordingly, investors are
cautioned not to put undue reliance on forward-looking statements due to
the inherent uncertainty therein.
SOURCE GAMMON GOLD INC.
For further information: For further information:
Please visit the Gammon Gold website at www.gammongold.com or contact:
|Rene Marion |
President and Chief Executive Officer
Gammon Gold Inc.
Director of Investor Relations
Gammon Gold Inc.