HALIFAX, Aug. 1 /CNW/ - Gammon Gold Inc. (TSX: GAM / AMEX: GRS)
("Gammon") advises that it has become aware through media reports that Midas
Funds Inc. appears to have filed a complaint with the United States District
Court Southern District of New York claiming damages from Gammon in the amount
of US$3 million. Gammon has not been served with the complaint, believes that
such a complaint would be without merit, and, if served, would vigorously be
defended. Further, the amount of the claim would not be financially material
to the Company and will have no affect on its operations.
About Gammon Gold Inc.
Gammon Gold 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 Gold remains 100% unhedged and
is targeting an annual production run rate of 400,000 gold equivalent ounces
(200,000 ounces of gold and 10 million ounces of silver) by the end of 2007
from the Company's Ocampo and El Cubo Mines.
Cautionary Note to US Investors - The United State 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 (File No. 001-31739), 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.
This News Release includes certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
legislation. All statements other than statements of historical fact, included
in this release, including, without limitation, statements regarding potential
mineralization and reserves, exploration results, and future plans and
objectives of Gammon Gold, are forward-looking statements (or orward-looking
information) that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from Gammon Gold's expectations include, among others, 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, as well as those factors discussed in the section entitled "Risk
Factors" in Gammon Gold's Form 40-F and Annual Information Form as filed with
the United States Securities and Exchange Commission. Although Gammon Gold has
attempted to identify important factors that could cause actual results to
differ materially, there may be other factors that cause results not to be as
anticipated, estimated or intended.
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 Gold 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: Russell Barwick, Chief Executive Officer,
Gammon Gold Inc., (902) 468-0614; Glenn Hynes, Chief Financial Officer, Gammon
Gold Inc., (902) 468-0614; www.gammongold.com