Northgate Minerals Comments on Recent Market Activity
22 Décembre 2008 - 12:00PM
PR Newswire (US)
NGX - TSX NXG - NYSE ALTERNEXT VANCOUVER, Dec. 22
/PRNewswire-FirstCall/ -- Northgate Minerals Corporation (TSX: NGX,
NYSE ALTERNEXT US/AMEX: NXG) today commented on the large trading
volume of the Company's shares and subsequent share price decline,
which took place during market trading hours on Friday, December
19, 2008, on both the Toronto Stock Exchange and the NYSE
Alternext. The company believes that the noted market activity was
due to its deletion from the S&P/TSX Composite Index, resulting
in a large sell-off by index-based investment funds. As part of its
quarterly review, the S&P/TSX Composite Index announced the
removal of more than 20 companies from its index, effective after
the close of trading on Friday, December 19. Northgate believes
that the current share price is considerably undervalued and does
not reflect the recent and significant developments of the company,
which includes the doubling of its gold resource base to over 4.0
million ounces at the Young-Davidson property, the 18-month
mine-life extension at the Stawell Gold Mine and the dramatic
improvement of operations at the Fosterville Gold Mine, which is
expected to contribute to the record quarterly gold production in
the fourth quarter. Northgate Minerals Corporation is a mid-tier
gold and copper producer with mining operations, development
projects and exploration properties in Canada and Australia. The
company is forecasting approximately 365,000 ounces of unhedged
gold production in 2008 and is targeting growth through further
acquisition opportunities in stable mining jurisdictions around the
world. Northgate is listed on the TSX under the symbol NGX and on
the NYSE Alternext US (formerly AMEX) under the symbol NXG.
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 future activities of and developments related
to the business activities of Northgate Minerals Corporation
(Northgate) and its subsidiaries, the market position, and future
financial or operating performance of Northgate, are
forward-looking and subject to important risk factors and
uncertainties, many of which are beyond the corporation's 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 the 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,
2007 or under the heading "Risks and Uncertainties" in Northgate's
2007 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. The corporation does not
undertake 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, except in each case as required
by law. DATASOURCE: Northgate Minerals Corporation CONTACT: Ms.
Keren R. Yun, Director, Investor Relations, Tel: (416) 363-1701
ext. 233, Email: ; Website: http://www.northgateminerals.com/
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