Business
Gammon Announces Expanded $100 Million Credit Facility
Gammon Announces Expanded $100 Million Credit Facility
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\n Nov. 5, 2010 (Canada NewsWire Group) -- \n\n#ReleaseContent TABLE\n{\n BORDER-COLLAPSE: collapse\n}\nTR.cnwUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD\n{\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell\n{\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell\n{\n BORDER-BOTTOM: #000000 3px solid\n}\n#ReleaseContent TABLE.cnwBorderedTable TD\n{\n BORDER-RIGHT: black 1px solid;\n PADDING-RIGHT: 2px;\n BORDER-TOP: black 1px solid;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n BORDER-LEFT: black 1px solid;\n PADDING-TOP: 2px;\n BORDER-BOTTOM: black 1px solid;\n BORDER-COLLAPSE: collapse\n}\n#ReleaseContent TABLE TD\n{\n PADDING-RIGHT: 2px;\n PADDING-LEFT: 2px;\n PADDING-BOTTOM: 2px;\n PADDING-TOP: 2px\n}\n\nTSX: GAM / NYSE: GRS / BSX: GL7\n\nTORONTO, Nov. 5 /CNW/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that it has signed an expanded line of credit facility of up to US$100 million that will be provided equally by The Bank of Nova Scotia and Société Générale. The facility will mature in 36 months with interest payable at a rate of LIBOR plus a margin of between 3.25-3.75%.\nUnder the terms of the new agreement the Company will have access to a US$75 million credit facility that can be increased to US$100 million upon the completion of the Capital Gold Corporation merger and associated conditions. There are no operational covenants associated with the facility nor are there any restrictions on the use of proceeds.\nThe new credit facility will enhance Gammon's liquidity profile and provide additional financial flexibility to advance the Company's internal growth strategy as well as leverage the operational and financial synergies that would be targeted through the Capital Gold merger.\n"We are pleased to have negotiated an increased revolving line of credit facility with The Bank of Nova Scotia and Société Générale as it demonstrates the confidence our lenders have in our improving operations," stated René Marion, Chief Executive Officer and President of Gammon Gold. He continued, "This credit facility, combin...