Gammon Gold acquires Capital Gold in US$420 million deal

On October 1, 2010, Gammon Gold Inc. (NYSE: GRS, TSX: GAM) and Capital Gold Corporation (TSX and NYSE AMEX: CGC) entered into a definitive merger agreement pursuant to which Gammon Gold offered to acquire all of the issued and outstanding common shares of Capital Gold in a cash and share transaction.

On April 1, 2011, a majority of shareholders of Capital Gold approved the friendly merger, defeating a rival bid by Timmins Gold. Gammon offered $1.09 plus 0.5209 of a Gammon share for each Capital share, valuing the company at about $420 million based on the share price at close of trading on March 31. The merger was completed on April 8, 2011.

Fasken Martineau was Canadian legal counsel to Gammon Gold in this transaction with a team that included Gregory Ho Yuen, John Turner, Aaron Atkinson, Bozidar Crnatovic, Ron Nobrega, Mitchell Thaw, Martin Fisher-Haydis, Susan Newell and Andrew Teehan.