Capital Gold’s Board Remains in Favour of Takeover Offer from Gammon Gold

Mar. 01, 2011 04:38PM PST

The Winnipeg Free Press reports that the directors of Capital Gold Corp. (TSE:CGC) are urging shareholders to vote for a merger with Gammon Gold Corp. (TSE:GAM) and warning that a rival bidder won’t have enough cash without raising $100 million this year.

The Winnipeg Free Press reports that the directors of Capital Gold Corp. (TSX:CGC) are urging shareholders to vote for a merger with Gammon Gold Corp. (TSX:GAM) and warning that a rival bidder won’t have enough cash without raising $100 million this year.

The report is quoted as saying:

“We believe there is a significant risk that CGC shares could lose substantial value if CGC shareholders do not approve the Gammon transaction,” John Cutler, chairman of Capital’s mergers committee, said in a public letter.

To read the full report, click here.

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