Gammon Gold Proposes Takeover Of Capital Gold

Gammon Gold, Inc. is about to take over Capital Gold, Inc. in a all-share deal. Both companies signed a Letter of Intent, and the terms of the deal are: 0.1028 shares of Gammon for each share of Capital. As of yesterday's close, this ratio would make each share of Capital worth more than 98 cents. This takeover is a friendly one, as the news release announcing it shows, and is subject to due-diligence requirements. A US$4 million breakup fee kicks in if the deal falls through, to be paid by the breaker to the breakee if the deal falls through on certain conditions.

This item was disseminated after trading ended. Gammon closed at $9.59, for a gain of 43 cents, and Capital closed at 81 cents, up 2 cents.

Gammon's Google Finance web page is here; Capital's is here.



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