AuRico Gold to acquire Northgate Minerals and form new entity

31 August 2011 (Last Updated August 31st, 2011 18:30)

AuRico Gold has entered into a definitive acquisition agreement with Northgate Minerals to create a new intermediate gold producer. The new firm will own five operating gold mines and a mine that is targeting production in 2012, along with three gold development projects in Mexico, Can

AuRico Gold has entered into a definitive acquisition agreement with Northgate Minerals to create a new intermediate gold producer.

The new firm will own five operating gold mines and a mine that is targeting production in 2012, along with three gold development projects in Mexico, Canada, and Australia.

According to the agreement, AuRico will acquire all of the issued and outstanding common shares of Northgate on the basis of 0.365 AuRico common shares per Northgate common share.

Northgate Minerals president and CEO Richard Hall said that the transaction will give Northgate shareholders a significant premium to market and an opportunity to participate in an intermediate gold company.