VANCOUVER,
Oct. 15 /PRNewswire-FirstCall/ -
Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG)
("Northgate") is pleased to announce that it has completed the sale
of an additional US$20 million of
3.50% convertible senior notes due 2016 ("Convertible Notes")
pursuant to the previously announced exercise of an over-allotment
option (the "Over-Allotment Option") by a syndicate of underwriters
(the "Underwriters") led by UBS Securities LLC. The Over-Allotment
Option was granted to the Underwriters in connection with the
public offering (the "Offering") of US$150
million Convertible Notes of Northgate which closed on
October 5, 2010. Net proceeds
from the Offering, including the Convertible Notes sold pursuant to
the exercise of the Over-Allotment Option, will be approximately
US$163.5 million after deducting the
Underwriters' commission and expenses of the Offering.
As previously announced, Northgate intends to
use the net proceeds of the Offering to finance a portion of the
US$339 million pre-production
development cost of its Young-Davidson gold mine near Matachewan, Ontario, which is currently
scheduled to begin producing gold in early 2012.
This press release shall not constitute an offer
to sell or the solicitation of an offer to buy nor shall there be
any sale of the Convertible Notes in any jurisdiction in which such
offer, solicitation, or sale would be unlawful prior to
registration or qualification under the securities laws of that
jurisdiction.
Northgate Minerals Corporation is a gold and
copper producer with mining operations, development projects and
exploration properties in Canada
and Australia. Our vision is to be
the leading intermediate gold producer by identifying, acquiring,
developing and operating profitable, long-life mining
properties.
Cautionary Note Regarding Forward-Looking
Statements and Information:
This Northgate press release contains
"forward-looking information", as such term is defined in
applicable Canadian securities legislation and "forward-looking
statements" within the meaning of the
United States Private Securities Litigation Reform Act of
1995, concerning the offering, the anticipated use of proceeds and
other statements that express management's expectations or
estimates of future developments, circumstances or results.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "expects", "believes",
"anticipates", "budget", "scheduled", "estimates", "forecasts",
"intends", "plans" and variations of such words and phrases, or by
statements that certain actions, events or results "may", "will",
"could", "would" or "might" "be taken", "occur" or "be achieved".
Forward-looking information is based on a number of assumptions and
estimates that, while considered reasonable by management based on
the business and markets in which Northgate operates, are
inherently subject to significant operational, economic and
competitive uncertainties and contingencies. Northgate cautions
that forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause Northgate's actual
results, performance or achievements to be materially different
from those expressed or implied by such information, including, but
not limited to gold and copper price volatility; fluctuations in
foreign exchange rates and interest rates; the impact of any
hedging activities; discrepancies between actual and estimated
production, between actual and estimated reserves and resources or
between actual and estimated metallurgical recoveries; costs of
production; capital expenditure requirements; the costs and timing
of construction and development of new deposits; and the success of
exploration and permitting activities. In addition, the factors
described or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31, 2009 or under the heading "Risks and
Uncertainties" in Northgate's 2009 Annual Report, both of which are
available on the SEDAR website at www.sedar.com, should be reviewed
in conjunction with the information found in this press release.
Although Northgate has attempted to identify important factors that
could cause actual results, performance or achievements to differ
materially from those contained in forward-looking information,
there can be other factors that cause results, performance or
achievements not to be as anticipated, estimated or intended. There
can be no assurance that such information will prove to be accurate
or that management's expectations or estimates of future
developments, circumstances or results will materialize.
Accordingly, readers should not place undue reliance on
forward-looking information. The forward-looking information in
this press release is made as of the date of this press release,
and Northgate disclaims any intention or obligation to update or
revise such information, except as required by applicable law.
SOURCE Northgate Minerals Corporation
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