Business
Gammon Gold Announces Replacement Credit Facility
Gammon Gold Announces Replacement Credit Facility
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\nNov. 9, 2009 (Canada NewsWire Group) -- HALIFAX, Nov. 9 /CNW/ -- Gammon Gold Inc. (\"Gammon\") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that it has restructured and replaced its prior syndicated credit facility with a standalone US$30 million revolving line of credit that will be offered 100% through The Bank of Nova Scotia and will mature 24 months from the date of closing.The new credit facility terms are expected to enhance Gammon's net cash flow profile as there will be no principal repayments other than a one-time payment on the maturity date equal to the drawn loan balance at that point in time.Rene Marion, Chief Executive Officer and President of Gammon Gold commented, \"We are pleased to have negotiated an increased revolving line of credit facility with The Bank of Nova Scotia. This facility, when combined with our recent US$115 million equity financing, ensures that the Company has the financial base required to accelerate the expanded company-wide exploration programs in 2010 as well as the next phase of exploration development at our key Guadalupe y Calvo development property.\"About Gammon GoldGammon Gold Inc. is a Nova Scotia based mid-tier gold and silver producer with properties in Mexico. The Company's flagship Ocampo Project in Chihuahua State achieved commercial production in January 2007. Gammon Gold also operates its El Cubo operation in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State.Cautionary StatementNo stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.Certain statements included herein, including information as to the future financial or operating performance of Gammon, its subsidiaries and its projects, constitute forward-looking statements. The words \"believe\", \"expect\", \"anticipate\", \"contemplate\", \"target\", \"plan\", \"intends\", \"continue\", \"budget\", \"estimate\", \"forecast\", \"may\", \"will\", \"schedule\" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding the closing of the Offering and the expenditure of the net proceeds therefrom, targets, estimates and assumptions in respect of gold and silver production and prices, operating costs, results and c...