Perseverance shareholders and warrant holders approve Northgate acquisition proposal
18 Janvier 2008 - 1:00PM
PR Newswire (US)
VANCOUVER, Jan. 18 /PRNewswire-FirstCall/ -- Northgate Minerals
Corporation (TSX: NGX, AMEX: NXG) is pleased to announce that the
common shareholders and warrant holders (referred to in Australia
as ordinary shareholders and optionholders, respectively) of
Perseverance Corporation Limited ("Perseverance") voted earlier
today in favour of their respective Schemes of Arrangement (the
"Schemes"), which will give effect to Northgate's acquisition of
Perseverance. These votes follow the previous approval received
from Perseverance noteholders on December 17, 2007. Approval by the
Supreme Court of Victoria of the Schemes is necessary before
proceeding with the acquisition and a hearing is scheduled for
February 1, 2008. Subject to that approval, implementation of the
Schemes is scheduled to occur on February 18, 2008. Ken Stowe,
Northgate's President and CEO, commented, "Today's approval of the
Schemes by the shareholders and warrant holders of Perseverance
represents a watershed event in what has been a lengthy but
ultimately rewarding process that will benefit shareholders and
employees of both companies. Our integration plans for Perseverance
are well advanced and both of our management teams are very excited
about the bright future of the Fosterville and Stawell mines as
part of the Northgate family. Once the transaction closes in
mid-February, Northgate will emerge as an unhedged, multi-mine gold
producer with a strong balance sheet, excellent cash flow and
tremendous growth potential, with operations in stable,
mining-friendly jurisdictions of Canada and Australia." Further
information about the proposed acquisition of Perseverance can be
found in Northgate's press release dated October 28, 2007.
NORTHGATE MINERALS CORPORATION is a gold and copper mining company
focused on operations and opportunities in the Americas and
Australia. The Corporation's principal assets are the Kemess South
mine in north-central British Columbia and the Young-Davidson
property in northern Ontario. With the proposed acquisition of
Perseverance Corporation Limited, the addition of two operating
mines will create a leading multi-mine, mid-tier gold producer,
with over 430,000 ounces of gold production in 2008. Northgate is
listed on the Toronto Stock Exchange under the symbol NGX and on
the American Stock Exchange under the symbol NXG. NOTE TO SECURITY
HOLDERS: This news release does not constitute an offer to buy or
an invitation to sell, or the solicitation of an offer to buy or
invitation to sell, any of the securities of Northgate or
Perseverance. Information about Perseverance is provided by
Perseverance and Northgate has not verified its accuracy or
completeness. Subject to the terms and conditions set forth in the
Merger Implementation Agreement relating to the proposed
transaction, Perseverance intends to mail a scheme booklet (which
will include an explanatory statement and independent expert's
report) to its shareholders. Perseverance shareholders and other
interested parties are strongly advised to read these documents, as
well as any amendments and supplements to these documents, when
they become available because they will contain important
information. FORWARD-LOOKING STATEMENTS: This news release contains
certain "forward-looking statements" and "forward-looking
information" under applicable Canadian and U.S. securities laws.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe," or "continue" or the
negative thereof or variations thereon or similar terminology.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Certain of the statements made herein, including any
information as to the timing and completion of the proposed
transaction, the potential benefits thereof, the future activities
of and developments related to Perseverance and Northgate prior to
the proposed transaction and the combined company after the
proposed transaction, market position, and future financial or
operating performance of Northgate or Perseverance, are
forward-looking and subject to important risk factors and
uncertainties, many of which are beyond the corporations' ability
to control or predict. Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such factors include, among others:
gold price volatility; impact of any hedging activities, including
margin limits and margin calls; discrepancies between actual and
estimated production, between actual and estimated reserves and
resources and between actual and estimated metallurgical
recoveries; costs of production, capital expenditures, costs and
timing of construction and the development of new deposits, success
of exploration activities and permitting time lines; changes in
national and local government legislation, taxation, controls,
regulations and political or economic developments in any of the
countries in which either corporation does or may carry out
business in the future; risks of sovereign investment; the
speculative nature of gold exploration, development and mining,
including the risks of obtaining necessary licenses and permits;
dilution; competition; loss of key employees; additional funding
requirements; and defective title to mineral claims or property. In
addition, there are risks and hazards associated with the business
of gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks), as well as the factors described
or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31,
2006 or under the heading "Risks and Uncertainties" in Northgate's
2006 annual report, both of which are available on SEDAR at
http://www.sedar.com/, and which should be reviewed in conjunction
with this document. Accordingly, readers should not place undue
reliance on forward-looking statements. Neither corporation
undertakes any obligation to update publicly or release any
revisions to forward-looking statements to reflect events or
circumstances after the date of this document or to reflect the
occurrence of unanticipated events. For further information about
Northgate, please visit http://www.northgateminerals.com/. For
further information about Perseverance, please visit
http://www.perseverance.com.au/. DATASOURCE: Northgate Minerals
Corporation CONTACT: Ms. Keren R. Yun, Manager, Investor Relations,
(416) 216-2781,
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