TORONTO (miningweekly.com) â€“ Halifax, Nova Scotia-based Gammon Gold has signed a letter of intent to buy fellow Canadian Capital Gold in an all-stock transaction, the firms announced on Thursday evening.
Both companies have operations in Mexico
Gammon will pay 0,1028 of one of its shares for every Capital Gold share held, which represents a 29% premium based on the companies’ respective ten-day volume weighted average trading prices closing on March 11.
The success of the deal is still subject to a number of conditions, including the due diligence, the negotiation of a definitive agreement, regulatory approval and the nod from Capital Gold shareholders.
The two firms plan to conclude their respective due diligence processes and conclude a definitive agreement by the end of this month, and Capital Gold has agreed not to solicit rival offers until then.
Gold mining machine for sale, cost of gold mining machine mammon Gold, which produces precious metals from two mines in Mexico, produced 154 428 Oz of gold and 5,78-million ounces of silver in 2008.
Capital Gold owns the El Chanute gold mine, also in Mexico, which started operations in July 2007.