Business
Gammon Gold Announces Strategic Investment in Corex Gold Corporation
Gammon Gold Announces Strategic Investment in Corex Gold Corporation
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\n Jul. 8, 2010 (Canada NewsWire Group) -- TSX: GAM / NYSE: GRS / BSX: GL7\n\n Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Gammon is pleased to announce that it has entered into an agreement with Corex Gold Corporation ("Corex") (TSX-V: CGE) to acquire 4,706,000 units of Corex pursuant to a non-brokered private placement. Each unit consists of one common share and one half of one share purchase warrant exercisable at CAD $0.90 for a period of 24 months from the closing date of the transaction. The subscription price for the units is CAD $0.68 per unit for an aggregate purchase price of CAD $3,200,080. Corex will place an additional 1,694,000 units, with other qualified investors, for total proceeds of $4,352,000.\nAfter giving effect to the private placement, Gammon Gold will hold approximately 12% of the issued and outstanding shares (approximately 14% on a fully diluted basis) of Corex. Gammon will have the right to participate in all future financings of Corex to maintain its proportionate shareholding. Gammon will also nominate one member to the Technical Advisory Board of Corex. Closing of the transaction is expected to be on or before July 16, 2010 and is subject to the approval of the TSX Venture Exchange.\nThe investment in Corex is part of Gammon's growth strategy of identifying and investing in quality companies and assets located throughout North America.\nCorex is a TSX Venture Exchange listed junior gold exploration company focused on advancing the Santana Gold Project in Sonora State, Mexico.\n\nAbout Gammon Gold\n\nGammon Gold Inc. is a 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 owns the El Cubo mine in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State. The Company recently completed option purchase agreements to acquire the Mezquite Project in Zacatecas State, Mexico and the Venus Project located north of the Ocampo mine in Chihuahua State, Mexico. It also has recently signed a Letter of Intent to acquire the Los Jarros Project in Chihuahua State, Mexico. The Company is based in Halifax, Nova Scotia with an Executive Office in Toronto, Ontario.\n\nCautionary Statement\n\nCautionary Note to US Inv...