HALIFAX, April 24 /CNW/ - Gammon Lake Resources Inc. ("Gammon Lake")
(TSX:GAM and AMEX: GRS) has today completed the public offering of 10,000,000
common shares at a price of $20.00 per common share for gross proceeds of
Cdn$200,000,000. The offering was sold on a bought deal basis to a syndicate
of underwriters led by BMO Capital Markets, and including Scotia Capital Inc.
and TD Securities Inc. Gammon Lake also granted to the underwriters an
over-allotment option to purchase an additional 1,500,000 common shares at a
price of $20.00 per share, exercisable for a period of 30 days from the
closing of the offering.
"We are very pleased with the completion of this financing," commented
Fred George, Chairman and President. "Net proceeds will be applied to the
repayment of indebtedness of approximately Cdn$133,717,694, resulting in a
strengthening of our balance sheet, and also towards the advancement of Gammon
Lake's projects, including the expansion of mine operations and growth of mine
production at Ocampo and El Cubo, additional exploration at Ocampo focused on
increasing project resources and reserves, and completion of a pre-feasibility
study for a potential second underground mine at Ocampo, including underground
development and drilling".
About Gammon Lake
Gammon Lake Resources Inc. is a Nova Scotia based mid tier gold and
silver producer with properties in Mexico. The Company's flagship Ocampo
Project achieved commercial production in January 2007. Gammon Lake remains
100% unhedged and is targeting production of 400,000 gold equivalent ounces
(200,000 ounces of gold and 10-million ounces of silver) in 2007 from the
Company's Ocampo and El Cubo Mines.
The qualified person responsible for all technical data reported in this
news release is John C. Thornton, Chief Operating Officer.
No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein.
This News Release includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995 and "forward-looking information" within the meaning of applicable
Canadian securities legislation. All statements other than statements of
historical fact, included in this release, including, without limitation,
statements regarding the annualized production run rate at the Ocampo and El
Cubo Mines, the operation of Gammon Lake after completion of the financing,
and future plans and objectives of Gammon Lake, are forward-looking statements
(or forward-looking information) that involve various risks and uncertainties.
These forward-looking statements are subject to a variety of risks and
uncertainties which could cause actual events or results to differ materially
from those reflected in the forward - looking statements, including risks
related to international operations, the actual results of current exploration
activities, conclusions of economic evaluations and changes in project
parameters as plans continue to be refined as well as future prices of gold
and silver and other risks and uncertainties, including those described in
Gammon Lake's Annual Information Form, its Annual Report on Form 40-F for the
year ended December 31, 2006 and Reports on Form 6-K filed with the Securities
and Exchange Commission.
There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gammon Lake does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
For further information:
For further information: please visit the Gammon Lake website at
www.gammonlake.com or contact: Colin P. Sutherland, Chief Financial Officer,
Gammon Lake Resources Inc., (902) 468-0614; Jodi Eye, Investor Relations,
Gammon Lake Resources Inc., (902) 468-0614