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.
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Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in the Americas and Australia. Northgate currently owns and operates the Fosterville and Stawell gold mines in Victoria Australia, and is building the Young-Davidson gold mine in northern Ontario, which is scheduled to commence production in 2012.
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Cautionary Note Regarding Forward-Looking Statements and Information:
This Northgate press release contains "forward-looking information", as
such term is defined in applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the United StatesPrivate Securities Litigation Reform Act of 1995, concerning
Northgate's future financial or operating performance and other
statements that express management's expectations or estimates of
future developments, circumstances or results. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "expects", "believes",
"anticipates", "budget", "scheduled", "estimates", "forecasts",
"intends", "plans" and variations of such words and phrases, or by
statements that certain actions, events or results "may", "will",
"could", "would" or "might", "be taken", "occur" or "be achieved".
Forward-looking information is based on a number of assumptions and
estimates that, while considered reasonable by management based on the
business and markets in which Northgate operates, are inherently
subject to significant operational, economic and competitive
uncertainties and contingencies. Northgate cautions that
forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause Northgate's actual
results, performance or achievements to be materially different from
those expressed or implied by such information, including, but not
limited to gold and copper price volatility; fluctuations in foreign
exchange rates and interest rates; the impact of any hedging
activities; discrepancies between actual and estimated production,
between actual and estimated reserves and resources or between actual
and estimated metallurgical recoveries; costs of production; capital
expenditure requirements; the costs and timing of construction and
development of new deposits; and the success of exploration and
permitting activities. In addition, the factors described or referred
to in the section entitled "Risk Factors" in Northgate's Annual
Information Form for the year ended December 31, 2010 or under the
heading "Risks and Uncertainties" in Northgate's 2010 Annual Report,
both of which are available on the SEDAR website at www.sedar.com,
should be reviewed in conjunction with the information found in this
press release. Although Northgate has attempted to identify important
factors that could cause actual results, performance or achievements to
differ materially from those contained in forward-looking information,
there can be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate or that
management's expectations or estimates of future developments,
circumstances or results will materialize. Accordingly, readers should
not place undue reliance on forward-looking information. The
forward-looking information in this press release is made as of the
date of this press release, and Northgate disclaims any intention or
obligation to update or revise such information, except as required by
applicable law.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
Northgate prepares its disclosure in accordance with the requirements of
securities laws in effect in Canada, which differ from the requirements
of US securities laws. Terms relating to mineral resources in this
press release are defined in accordance with National Instrument
43-101-Standards of Disclosure for Mineral Projects under the
guidelines set out in the Canadian Institute of Mining, Metallurgy, and
Petroleum Standards on Mineral Resources and Mineral Reserves. The
Securities and Exchange Commission (the "SEC") permits mining
companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally extract or
produce. The Corporation uses certain terms, such as, "measured mineral
resources", "indicated mineral resources", "inferred mineral resources"
and "probable mineral reserves", that the SEC does not recognize (these
terms may be used in this press release and are included in the
Corporation's public filings which have been filed with securities
commissions or similar authorities in Canada).
SOURCE Northgate Minerals Corporation