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Oct. 3, 2011 /PRNewswire/ - (All figures in US dollars except where noted) As previously announced, Northgate Minerals Corporation (the "Company") (TSX: NGX) (NYSE Amex: NXG) has entered into an Arrangement Agreement (the "Arrangement Agreement"), dated as of
August 29, 2011, by and among the Company and AuRico Gold Inc. ("AuRico"), pursuant to which, among other things and subject to the satisfaction of certain conditions to effectiveness, AuRico will acquire all of the issued and outstanding common shares of the Company in accordance with a court-approved plan of arrangement of the Company under the
British ColumbiaBusiness Corporations Act (the "Arrangement"). Assuming the Arrangement becomes effective, each shareholder of the Company will receive 0.365 of an AuRico common share for each common share of the Company. Currently, the parties expect the effective date of the Arrangement to occur on or about
October 26, 2011.
The Company has provided a notice to holders (the "Holders") of the Company's 3.50% convertible senior notes due 2016 (the "Convertible Notes") concerning their right to convert the Convertible Notes. Prior to the effectiveness of the proposed Arrangement, the Convertible Notes will be convertible into common shares of the Company and upon the effectiveness of the Arrangement the Convertible Notes (when convertible in accordance with their terms) will be convertible into AuRico common shares. The Company may, at its election, deliver cash or a combination of cash and common shares, upon conversion in accordance with terms of the Convertible Notes.
Holders should also note that, because the Company's and AuRico's obligations to consummate the Arrangement are subject to various conditions set forth in the Arrangement Agreement, the Company cannot be sure that the Arrangement will in fact occur at the time expected above, or at all. This press release is issued in accordance with the terms of the Convertible Notes.