The new combined company will have five operating gold mines, a sixth mine targeting production in 2012 and three gold development projects in Mexico, Canada and Australia.
Under the agreement, AuRico will acquire all of the issued and outstanding common shares of Northgate on the basis of 0.365 AuRico common shares per Northgate common share.
The new company is expected to produce about 475,000 gold equivalent (Aue) ounces this year, and the production will increase to more that 730,000 Aue ounces by 2013.
Current shareholders of AuRico and Northgate will own about 62% and 38% of the pro forma company, respectively.
