AuRico Gold Completes Acquisition of Northgate Minerals Corporation

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[{"type":"text","content":"\n\n\n\n\n\nTORONTO, Oct. 26, 2011 /CNW/ - AuRico Gold Inc. (TSX:AUQ) (NYSE:AUQ) (\"AuRico\") is pleased to announce that it has completed its previously announced\n acquisition of Northgate Minerals Corporation (TSX:NGX) (NYSE-Amex:NXG)\n (\"Northgate\").\n\n\nWith the completion of this strategic acquisition, AuRico is now\n positioned as a new leading intermediate gold producer with five\n operating mines and Young-Davidson targeting production at the end of\n Q1 2012. Ocampo and Young-Davidson alone have the potential to produce\n over 500,000 gold equivalent ounces at lowest quartile cash costs. With\n a strong balance sheet and a robust and growing cash flow profile, the\n new company is led by an experienced management team with a proven\n track record of creating value in the industry.\n\n\n\"We are pleased to complete this transformational acquisition and begin\n to leverage the potential of our expanded asset base. The combination\n of our key assets significantly expands our production profile and\n establishes the company as a leading intermediate, low cost producer\n with a substantial growth platform and a compelling valuation\n opportunity,\" stated Rene Marion, President and Chief Executive Officer\n of AuRico.\n\n\nThe acquisition was carried out by way of a plan of arrangement pursuant\n to the provisions of the Business Corporations Act (British Columbia)\n and was approved by the Supreme Court of British Columbia. \n Shareholders of both AuRico and Northgate voted overwhelmingly in\n favour to approve AuRico's acquisition of Northgate at their respective\n special meetings of shareholders each held on October 24, 2011. Under\n the terms of the acquisition, AuRico, among other things, acquired all\n of the issued and outstanding common shares of Northgate on the basis\n of 0.365 AuRico common shares for each common share of Northgate. In\n connection with the acquisition, AuRico will amalgamate with Northgate\n and Northgate will be delisted from trading on the TSX and NYSE Amex\n effective Wednesday, October 26, 2011.\n\n\nAuRico's lead financial advisor for the transaction was UBS Securities\n Canada Inc. and AuRico's legal counsel was Fasken Martineau DuMoulin\n LLP. UBS Securities Canada Inc. provided a fairness opinion to the\n Board of Directors of AuRico.\n\n\nNorthgate's lead financial advisor for...

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