Capital Gold shareholders approve merger with Gammon

The board of New York-based Capital Gold (Amex, TSX: CGC) reported that its shareholders approved a merger with Toronto's Gammon Gold (NYSE: GRS, TSX: GAM) at a meeting on Friday (Apr 1). Official certification of the voting results is expected shortly, at which time the certified results will be announced, Capital said in a statement. The firms announced last October the signing of a definite merger agreement in a cash and share transaction worth approximately US$288mn at the time. Under the terms, each Capital common share was to be exchanged for 0.5209 of a Gammon common share and a cash payment of US$0.79/share. However, Vancouverite Timmins Gold (TSX-V: TMM) also made several attempts to merge with Capital, eventually offering 2.27 shares and US$0.25 cash for each Capital share. Gammon then upped its offer to 0.5209 of a share and US$1.09 cash for each Capital share. Capital's board consistently supported the Gammon merger and had rejected Timmins' original proposal, which was made prior to signing the agreement with the Toronto-based miner. Capital owns the El Chanate gold mine in Mexico's Sonora state and the Del Norte deposit in Nayarit state's Orion district. Gammon owns the Ocampo gold-silver mine in Chihuahua state and El Cubo gold-silver operation in Guanajuato state.