Gammon Gold (GRS) Ends Labor Disruption at El Cubo

After a drawn out affair, the battle between Gammon Gold (NYSE:GRS) and unions over its 100 percent owned El Cubo mine has been resolved.

Commenting on El Cubo, Rene Marion, President and CEO, said in a press release, "We have been steadfast in our view that to unlock the true value of El Cubo, significant amendments to the Collective Agreement would be required. We now look forward to rehiring our employees and operating and growing this asset to the benefit of Gammon Gold stakeholders under a Collective Agreement that supports enhanced operational and cost efficiencies that will benefit both the Company and our workforce and their families."

"As operations at the El Cubo mine have been suspended since June 2, 2010, the Company will initially focus on evaluating the underground conditions and mine facilities to develop an operations plan that will allow production to recommence as soon as possible. Production operations will be phased-in as management retrains employees and develops sufficient mining areas to allow the proper sequencing of underground mining activity as the mine ramps up to full scale production, added the company in the press release.

Gammon closed Wednesday at $9.08, falling $0.21, or 2.26 percent.