Capital Gold Corporation (CGC.TO) told reaffirmed its support for a proposed merger agreement with Gammon Gold Inc. (GMM.TO).

CGC today acknowledged that, on March 15, 2011, Timmins Gold Corp. (TMM.V) added $0.25 in cash to its unsolicited offer for Capital Gold. Also on March 15, 2011, Gammon Gold announced that it was proposing to amend its merger agreement with Capital Gold to increase the cash component of the merger consideration to be paid to CGC’s stockholders by $0.30, from $0.79 to $1.09.

“The Board of Directors of Capital Gold has considered both bids and

unanimously reaffirms its support of the merger with Gammon, as increased,” Capital Gold said in a statement