Completes Acquisition of Northgate Minerals
posted on Nov 04, 2011 01:44PM
Canadian gold & silver producer
Diversified portfolio of high quality mines and projects in Canada, Mexico & Australia
AuRico Gold Completes Acquisition of Northgate Minerals Corporation
Toronto, October 26, 2011: AuRico Gold Inc. (TSX:AUQ) (NYSE:AUQ) (“AuRico”) is pleased to announce that it has completed its acquisition of Northgate Minerals Corporation (TSX:NGX) (NYSE-Amex:NXG) (“Northgate”).
With the completion of this strategic acquisition, AuRico is now positioned as a leading intermediate gold producer with five operating mines and Young-Davidson targeting production at the end of Q1 2012. Ocampo and Young-Davidson alone have the potential to produce over 500,000 gold equivalent ounces at lowest quartile cash costs. With a strong balance sheet and a robust and growing cash flow profile, the new company will be led by an experienced management team with a proven track record of creating value for shareholders.
“We are pleased to complete this transformational acquisition and begin to leverage the potential of our expanded asset base. The combination of our key assets significantly expands our production profile and establishes the company as a leading intermediate, low cost producer with a substantial growth platform and a compelling valuation opportunity,” stated Rene Marion, President and Chief Executive Officer of AuRico.
The acquisition was carried out by way of a plan of arrangement pursuant to the provisions of the Business Corporations Act (British Columbia) and was approved by the Supreme Court of British Columbia. Shareholders of both AuRico and Northgate voted overwhelmingly in favour to approve AuRico’s acquisition of Northgate at their respective special meetings of shareholders each held on October 24, 2011. Under the terms of the acquisition, AuRico, among other things, acquired all of the issued and outstanding common shares of Northgate on the basis of 0.365 of an AuRico common share for each common share of Northgate. In connection with the acquisition, AuRico will amalgamate with Northgate, and the shares of Northgate will be delisted from the TSX and NYSE Amex effective Wednesday, October 26, 2011.
AuRico’s lead financial advisor for the transaction was UBS Securities Canada Inc. and AuRico’s legal counsel was Fasken Martineau DuMoulin LLP. UBS Securities Canada Inc. provided a fairness opinion to the Board of Directors of AuRico.
Northgate’s lead financial advisor for the transaction was GMP Securities L.P., while Macquarie Capital Markets Canada Ltd. also provided a fairness opinion to the Special Committee and Board of Directors of Northgate. Northgate’s legal counsel is Torys LLP.
About AuRico Gold:
AuRico Gold is a leading intermediate Canadian gold and silver producer with a diversified portfolio of high quality mines and projects in Canada, Mexico and Australia. The Company currently has five operating properties including the Ocampo mine in Chihuahua State, the El Chanate mine in Sonora State, the El Cubo mine in Guanajuato State, as well as the Fosterville and Stawell gold mines in Victoria, Australia. The first production from the exciting Young-Davidson gold mine in northern Ontario is expected by the end of Q1 2012 as the mine ramps up production to over 200,000 ounces of annual production by 2014. AuRico’s strong pipeline of development and exploration stage projects includes advanced development properties in Mexico and British Columbia and several highly prospective exploration properties in Mexico. AuRico’s head office is located in Toronto, Ontario, Canada.