TORONTO — Gammon Gold and Capital Gold Corp. have signed a letter of intent outlining Gammon’s proposed acquisition of Capital Gold in an all-share transaction. The deal is worth approximately US$150 million.
Gammon plans to issue 0.1028 of a share for each Capital Gold common share outstanding. The exchange ratio implies a value of US$0.76 for each Capital Gold share and represents a 29% premium on the 10-day volume-weighted average trading price of both companies’ shares on March 11, 2009. Capital Gold has approximately 198 million shares outstanding.
Get more information about the proposed deal at either www.GammonGold.com or www.CapitalGoldCorp.com.