NGX - TSX NXG - NYSE AMEX
VANCOUVER, Feb. 28 /PRNewswire/ - (All figures in US dollars) Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) today reported the sale of its entire portfolio of auction rate securities ("ARS") for total consideration of approximately $40.9 million. Northgate had previously estimated the fair market value of its ARS at approximately $36.6 million. The proceeds from the sale were used to repay, in full, the outstanding balance of the loan, originally made by Lehman Brothers Inc., which was collateralized by the ARS held in the Corporation's investment account managed by Lehman. The loan and associated ARS account were subsequently acquired by Barclays plc in September 2008 as part of its court-approved purchase of the assets of then-bankrupt Lehman Brothers.
"We are very pleased to have sold our ARS investments at a price that has allowed us to repay the loan in full and to further strengthen our balance sheet" commented Ken Stowe, Northgate's President and Chief Executive Officer. "We waited patiently for three and half years for liquidity to be restored to these investments so that we could secure a return that we felt reflected their underlying value. With this uncertainty removed, we will have greater flexibility to execute our strategic objectives as we continue to build towards a stronger future for Northgate."
For complete disclosure on Northgate's ARS holdings, refer to the Corporation's 2009 Annual Report, which can be found on Northgate's website at
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.