Business
AuRico Gold to Acquire Northgate Minerals and Create A Leading Intermediate Gold Company
Superior Production Growth with Fully Un-Hedged Precious Metals Exposure TORONTO, Aug. 29...
About this update from Alamos Gold Inc.
[{"type":"text","content":"\n\n\n\n\n\nSuperior Production Growth with Fully Un-Hedged Precious Metals Exposure\n\n\nTORONTO, Aug. 29, 2011 /CNW/ - AuRico Gold Inc. (\"AuRico\") (TSX:AUQ) (NYSE:AUQ) and Northgate Minerals Corporation (\"Northgate\") (TSX:NGX) (NYSE-Amex:NXG) are pleased to announce that\n they have entered into a definitive acquisition agreement (the\n \"Agreement\") to create a new leading intermediate gold producer. The\n new company will have 5 operating gold mines, a sixth mine targeting\n production in 2012 and 3 gold development projects in Mexico, Canada,\n and Australia, three of the top global mining jurisdictions. The\n combined company is completely unhedged and offers full exposure to\n record gold and silver prices and an exceptional growth profile from\n approximately 475,0001 gold equivalent (\"Aue\") ounces2 this year to 730,000+3 Aue ounces in 2013 (growth of approximately 54%). All figures in\n Canadian dollars, unless otherwise indicated.\n\n\nUnder the terms of the Agreement, AuRico will acquire all of the issued\n and outstanding common shares of Northgate on the basis of 0.365 AuRico\n common shares per Northgate common share. Based on both companies'\n 20-day volume weighted average prices on the Toronto Stock Exchange\n (TSX) ending on August 26, 2011, the exchange ratio under the offer\n represents a 45% premium to Northgate's shareholders.\n\n\n\"The combination of AuRico and Northgate will immediately position the\n combined company as a pre-eminent intermediate gold producer with peer\n leading growth\", said Rene Marion, President and CEO of AuRico. \"The\n assets, projects and people in our two companies are highly\n complementary and we are excited about the many opportunities ahead for\n us to continue to deliver value to our shareholders.\"\n\n\nRichard Hall, President and CEO of Northgate, added \"This transaction\n gives Northgate shareholders a significant premium to market and an\n exciting opportunity to participate in a leading intermediate gold\n company.  The Northgate team has worked hard to develop a highly\n successful business in Canada and Australia and we look forward to\n further value creation through our combination with AuRico.\"\n\n\nAuRico Gold Pro Forma Highlights:\n\n\nEmergence of a new leading intermediate gold company with expected 2011\n production of 475,000 Aue ounces1 and ...