Under the terms of agreement, Northgate Minerals will acquire all of the issued and outstanding common shares of Primero for 1.50 Northgate common shares per Primero Share.
The new firm will have access to current production and expansion potential at the San Dimas mine in Mexico and the Fosterville and Stawell gold mines in Australia, along with Young-Davidson gold development project in Ontario.
With this transaction, the new firm have combined market capitalisation of about $1.2bn.
Northgate Minerals Chairman of the Board of Directors Terry Lyons said the value proposition of the combined company represents a unique opportunity for both firms to deliver both immediate and long-term value to the shareholders.
"The proposed transaction is part of an overall business strategy to grow through acquisition and exploration in politically stable jurisdictions with long histories of gold mining," Lyons said.
