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Friday, July 16, 2010

Gammon Gold (NYSE:GRS) Closes Private Placement with Corex Gold (CDNX:CGE.V)

Gammon Gold Inc. (NYSE:GRS) (TSE:GAM) announced today is has closed its private placement with Corex Gold (CDNX:CGE.V).

Gammon acquired 4,706,000 units of Corex at a price of C$0.68 a unit, for a total investment of C$3,200,080. That gives them close to a 12 percent stake in the junior gold miner (14 percent on a fully diluted basis).

Included in each unit acquired is one common share of Corex, along with one half of one share purchase warrant exercisable at C$0.90. That will apply over a 24-month period from the date of close.

In order to maintain its current percentage of stake in the company, Gammon also has the right to take part in every future financing of Corex.

Corex was at $0.68 a share as of 2:25 PM EDT, gaining 2 cents, or 2.99 percent.

Gammon was down to $5.38 a share, dropping 35 cents, or 6.11 percent at the same time. Most of that is attributed to falling gold prices.

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