VANCOUVER, 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 Columbia Business 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV