CGC & GAM merger offCapital Gold Corporation Announces End of Merger Discussions with Gammon Gold
3/31/2009 3:23 PM - PR Newswire
--Approximately 15,000 Ounces of Gold Produced for the First Three Months
NEW YORK, March 31, 2009 /PRNewswire-FirstCall via COMTEX News Network/ --
CapitalGold Corporation (TSX: CGC; OTC Bulletin Board: CGLD) reported todaythat the Letter of Intent with Gammon Gold, originally announced onMarch 12, was allowed to expire. The Board of Directors of Capital Goldmade the decision not to proceed with the signing of the definitiveagreement, and further negotiations will not take place.
ElChanate gold production continues at steady rate and the mine hasproduced approximately 15,000 ounces of gold for the first three monthsof 2009. The first major components of the new crushing plant havearrived on site. Once the new crusher is installed and online by lateJune, production at El Chanate is estimated to achieve a monthly rateof 6,000 ounces.
About Capital Gold
Capital GoldCorporation (CGLD: CGC) is a gold production and exploration company.Through its Mexican subsidiaries and affiliates, it owns 100% of the ElChanate gold property in Sonora, Mexico. The Company has produced over65,000 ounces of gold since inception. Further information aboutCapital Gold and the El Chanate Gold Mine is available on the Company'swebsite, www.capitalgoldcorp.com.
Statements in this pressrelease, other than statements of historical information, areforward-looking statements within the meaning of the Private SecuritiesLitigation Reform Act of 1995. Investors are cautioned thatforward-looking statements are inherently uncertain. Actual performanceand results may differ materially from those projected or suggested dueto certain risks and uncertainties, some of which are described below.Such forward-looking statements include comments regarding theestablishment and estimates of mineral reserves and non-reservemineralized material, future increases in mineral reserves, therecovery of any mineral reserves, grade, processing rates and capacity,estimated future gold production, the impact of any hedgingarrangements, including the termination of such arrangements; potentialmine life and future growth of the company. Factors that could causeactual results to differ materially include timing of and, unexpectedevents during expansion; variations in ore grade, tonnes mined, crushedor milled; delay or failure to receive board or government approvals;the availability of adequate water supplies; mining or processingissues, the possibility that the proposed acquisition of the Company byGammon Gold, Inc. will not be consummated; and fluctuations in goldprice and costs. There can be no assurance that future developmentsaffecting the Company will be those anticipated by management.
Anyforecasts contained in this press release constitute management'scurrent estimates, as of the date of this press release, with respectto the matters covered thereby. We expect that these estimates willchange as new information is received and that actual results will varyfrom these estimates, possibly by material amounts. While we may electto update these estimates at any time, we do not undertake to updateany estimate at any particular time or in response to any particularevent. Investors and others should not assume that any forecasts inthis press release represent management's estimate as of any date otherthan the date of this press release. Additional information concerningcertain risks and uncertainties that could cause actual, results todiffer materially from that projected or suggested is contained in theCompany's filings with the Securities and Exchange Commission (SEC)over the past 12 months, copies of which are available from the SEC ormay be obtained upon request from the Company.
SOURCE Capital Gold Corporation
https://www.capitalgoldcorp.com
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