* Says lending syndicate amends credit facility

* Loan covenant breach waived

* Lenders grant access to undrawn part of $50 mln facility

June 29 (Reuters) - Canadian gold producer Gammon Gold Inc said its lenders have agreed to waive the current loan covenant breach and granted it access to the undrawn portion of its $50 million credit facility.

The lending syndicate, comprised of Bank of Montreal and the Bank of Nova Scotia, also revised the repayment schedule and amended the financial covenants, the company said in a statement.

However, the banks have removed the production and cash operating covenants.

Shares of the Nova Scotia-based company were up 6 Canadian cents at C$8.13 in midday trade Monday on the Toronto Stock Exchange.

(Reporting by Sakshi A Mattoo in Bangalore; Editing by Ratul Ray Chaudhuri) Keywords: GAMMONGOLD/

(sakshi.mattoo@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sakshi.mattoo.thomsonreuters.com@reuters.net)

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