Gammon Gold (TSE:GAM) Invests in Golden Queen Mining (TSE:GQM)

Gammon Gold (TSE:GAM) (NYSE:GRS) has reportedly invested $7.57 million in Golden Queen Mining (TSE:GQM) (OTC:GQMNF.PK). That'll give them a 6.1 percent stake in the company.

Golden Queen issued 5 million shares priced at $1.51 each, equal to an 8 percent premium over where it closed on Friday.

They are also issuing 1.5-year warrants to acquire 1.25 million shares for $1.66 a share, and another 1.25 million shares for $1.89 a share.

Golden Queen said they're raising the capital to help fund the operations at their Soledad mining project, located in Mojave, California, as well as working capital.

For Gammon, this continues their expansion strategy of investing in what they identify as quality companies with assets based in North America.