Northgate Updates Progress on Perseverance Acquisition
VANCOUVER, British Columbia, Dec 18, 2007 (BUSINESS WIRE) -- Northgate Minerals Corporation (NXG: Northgate Exploration Limited) (CA:NGX) is pleased to announce that the holders of the convertible subordinated notes ("Noteholders") of Perseverance Corporation Limited ("Perseverance") have approved the extraordinary resolution as set out in the Meeting of Noteholders held on December 17, 2007.
Under the terms defined in the resolution, the convertible subordinated notes will be subject to early redemption and Perseverance Noteholders will receive A$100,000 (face value) plus any accrued interest per subordinated note, provided that the schemes of arrangement between Perseverance and its shareholders and warrantholders (referred to in Australia as optionholders) are approved. The share scheme and option scheme meetings of Perseverance's shareholders and optionholders, respectively, are scheduled to take place on January 18, 2008.
Ken Stowe, President & CEO, commented, "The approval of the resolution by Perseverance Noteholders is an important step in completing our acquisition of this significant Australian gold producer. With the unanimous recommendation by Perseverance's Board and positive Noteholder support, we look forward to the successful completion of this deal in mid-February 2008."
Further information about the proposed acquisition of Perseverance can be found in Northgate's press release dated October 29, 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.