Business
Gammon Gold Announces Strategic Investment in Golden Queen Mining Company
Gammon Gold Announces Strategic Investment in Golden Queen Mining Company
About this update from Auq Gold Mining Inc.
[{"type":"text","content":"\n\n\n\n May 28, 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 signed an agreement to acquire 5,000,000 units of Golden Queen Mining Co. Ltd. ("Golden Queen") pursuant to a non-brokered private placement. Each unit consists of one common share, one quarter of one share purchase warrant exercisable at CAD $1.75, and one quarter of one share purchase warrant exercisable at CAD $2.00 for a period of 18 months from the closing date of the transaction. The subscription price for the units is CAD $1.60 per unit for an aggregate purchase price of CAD $8,000,000. After giving effect to the private placement, Gammon Gold will hold approximately 5.3% of the issued and outstanding common shares (approximately 7.5% on a fully diluted basis) of Golden Queen. Gammon will have the right to participate in all future financings of Golden Queen to maintain its proportionate shareholding. Closing of the transaction is expected to be on or before June 1, 2010.\nThe investment in Golden Queen is part of Gammon's growth strategy of identifying and investing in quality companies and assets located throughout North America.\nGolden Queen is a gold exploration and development company listed on the TSX (TSX: GQM), whose principal asset is the 100% interest in the pre-development stage gold-silver Soledad Mountain property ("Soledad") located in Kern County, Southern California.\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 operates its El Cubo operation in Guanajuato State and has the promising Guadalupe y Calvo development property in Chihuahua State. The Company recently completed a purchase option agreement to acquire the Mezquite Project ("Mezquite") in Zacatecas State, Mexico. The Company is based in Halifax, Nova Scotia with an Executive Office in Toronto, Ontario.\n\n\n >\n\n\nCautionary Note to US Investors - The United States Securities and Exchange Commission permits US mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or ...