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AuRico Gold to acquire Northgate Minerals

AuRico Gold and Northgate Minerals have entered into an acquisition agreement to create a new intermediate gold producer. Northgate is developing the Young-Davidson gold mine near Matachewan which is expected to begin production in 2012.
Northern Ontario Business Staff

AuRico Gold and Northgate Minerals have entered into an acquisition agreement to create a new intermediate gold producer. Northgate is developing the Young-Davidson gold mine near Matachewan which is expected to begin production in 2012. It also owns and operates two gold mines in Australia.

AuRico has three operating properties in Mexico along with other exploration and development projects there.

Current shareholders of AuRico and Northgate will own 62 per cent and 38 per cent respectively of the

new company and the board of directors will include three nominees from Northgate.

According to a press release, Northgate's previous agreement with Primero Mining has been terminated and Northgate has paid a termination fee of $25 million to Primero.