Northgate Drops Aurizon Offer

Northgate Minerals(NXG Quote) ended its bid to acquire fellow gold miner Aurizon Mines(AZK Quote) after British Columbia's Court of Appeal said an injunction imposed by a lower court late last month is still in effect, preventing the offer from taking place.

Aurizon's management had opposed the takeover proposal from Northgate, saying the offer was inadequate and not in the best interest of its shareholders. Any shares that Aurizon stockholders had tendered following the offer will be returned.

Northgate said it was "extremely disappointed" with the court's decision, but that it would move on to "other opportunities to create long-term value"

Shares of Northgate rose 3 cents to $3.91. Aurizon slipped 11 cents to $2.74.