Gammon Gold Completes Land Acquisition at its Ocampo Mine And Becomes the First Gold Mining Company Headquartered Outside of Mexico to Own Exclusive Land Rights in Mexico
Posted on: Monday, 1 June 2009, 09:11 CDT
HALIFAX, June 1 /PRNewswire/ - Gammon Gold Inc. ("Gammon") (TSX:GAM and NYSE:GRS): Fred George, President and Chairman of Gammon Gold, is pleased to announce that the Company has received Presidential approval for the absolute freehold title acquisition of its 4,275 hectares Ocampo land package and has subsequently become the first gold mining company headquartered outside of Mexico to own exclusive land rights and titles for the property used in its operations. The more common practice for mining companies operating in Mexico is to enter into a land rental agreement with the local Ejito land owners. Gammon made the strategic decision to negotiate the freehold title purchase of its land package in order to avoid any potential disruption of its operations.
In early 2008, Gammon successfully finalized the purchase of the current Ocampo land package with the local Ejito land owners for cumulative purchase costs of CDN$4.5 million. Upon the completion of this part of the transaction, the Company then submitted its application to the Mexican government to begin the final stage of the land ownership process. On Friday, May 29, 2009, a Presidential Decree signed by Felipe Calderon, the President of Mexico, was issued, formally granting all property rights and titles to the Ocampo land package to Gammon, thereby securing the development of present and future mining operations at Ocampo.
"We are very pleased to have received formal Presidential approval ratifying Gammon's freehold title property rights at our flagship Ocampo mine" stated Rene Marion, Chief Executive Officer of Gammon Gold. "The completion of this unprecedented transaction further assures that the Ocampo mine will continue to operate without any threat of disruption associated with property use rights."
About Gammon Gold
Gammon Gold Inc. is a Nova Scotia based mid-tier gold and silver producer with properties in Mexico. The Company's flagship Ocampo Project in Chihuahua State achieved commercial production in January 2007. Gammon Gold also operates its El Cubo operation in Guanajuato State and has the promising development Guadalupe y Calvo property in Chihuahua State. The Company remains 100% unhedged.
Cautionary Statement
Cautionary Note to US Investors - The United States Securities and
Exchange Commission permits US mining companies, in their filings with the
SEC, to disclose only those mineral deposits that a company can economically
and legally extract or produce. This press release uses certain terms, such as
"measured," "indicated," and "inferred" "resources," that the SEC guidelines
strictly prohibit US registered companies from including in their filings with
the SEC. US Investors are urged to consider closely the disclosure in Gammon
Gold's Annual Report on Form 40-F (File # 001-31739), which may be secured
from Gammon Gold, or from the SEC's website at http://www.sec.gov/edgar.shtml.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. This News Release
includes certain "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and "forward-looking
information" within the meaning of applicable Canadian legislation. All
statements other than statements of historical fact, included in this release,
including, without limitation, statements regarding potential mineralization
and reserves, exploration results, and future plans and objectives of Gammon
Gold, are forward-looking statements (or forward-looking information) that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Gammon
Gold's expectations include, among others, risks related to international
operations, the actual results of current exploration activities, conclusions
of economic evaluations and changes in project parameters as plans continue to
be refined as well as future prices of gold and silver, as well as those
factors discussed in the section entitled "Risk Factors" in Gammon Gold's Form
40-F and Annual Information Form as filed with the United States Securities
and Exchange Commission. Although Gammon Gold has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated, estimated or
intended.
There can be no assurance that such statements will prove to be accurate
as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Gammon Gold does not undertake to
update any forward-looking statements that are included herein, except in
accordance with applicable securities laws.
SOURCE Gammon Gold Inc.
Source: PR Newswire
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