With a successful US$150 million public stock offering, Northgate Minerals is now fully funded to build its Young-Davidson gold mine 60 kilometres west of Kirkland Lake.
Net proceeds from the offering will go towards the project, whose pre-production development costs are pegged at $339 million.
Production at the new mine is slated to begin in early 2012, churning out 180,000 ounces of gold per year throughout its 15-year life.
The public offering had initially been pegged at $135 million, but “strong investor demand” led to its increase to $150 million.
The two-year development of the project will employ 600, while full operation of the completed mine will employ 275. Approximately $50 million in goods and services will be purchased annually throughout the life of the project.
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