TORONTO, October 26, 2011 /PRNewswire/ --
AuRico Gold Inc. (TSX:AUQ) (NYSE:AUQ) ("AuRico") is pleased to announce that it has completed its previously announced acquisition of Northgate Minerals Corporation (TSX:NGX) (NYSE-Amex:NXG) ("Northgate").
With the completion of this strategic acquisition, AuRico is now positioned as a new 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 is led by an experienced management team with a proven track record of creating value in the industry.
"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 AuRico common shares for each common share of Northgate. In connection with the acquisition, AuRico will amalgamate with Northgate and Northgate will be delisted from trading on 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.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV