NEW YORK, Dec. 5, 2010 /CNW/ -- Capital Gold Corporation (TSX: CGC; NYSE Amex: CGC) announced today that its Board of Directors (the "Board") has reviewed and considered the merger proposal from Timmins Gold Corp. ("Timmins"), which Timmins announced on December 3, 2010. The Board, with the assistance of the Special Committee of the Board and its advisors, considered the points raised by Timmins in such proposal and has determined that it is, in principal, the same proposal previously submitted by Timmins and does not constitute a superior proposal as that term is defined in the agreement and plan of merger with Gammon Gold ("Gammon"). Accordingly, the Board continues to unanimously recommend to its stockholders that they vote in favor of the Gammon transaction. Additional disclosure with respect to the Board's deliberations and its response to Timmins will be set forth in an amendment to the Company's Preliminary Proxy contained within Gammon's Registration Statement on Form F-4, which it expects to file with the Securities and Exchange Commission in the upcoming weeks.