On September 22, 2009, Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) announced that it has entered into an agreement to sell, to a syndicate of underwriters led by CIBC, on a bought deal basis, 34,300,000 common shares at a price of C$2.92 per common share, for aggregate gross proceeds of approximately C$100 million. Northgate Minerals has granted the underwriters the option to purchase up to an additional 5,145,000 common shares at the same price, exercisable in whole or in part, at any time up until 30 days following closing of the offering.
The proceeds from the offering will be used by Northgate to finance the development of the Young-Davidson project in northern Ontario and for general corporate purposes. Closing of the offering is scheduled for September 30, 2009.
Northgate Minerals Corporation is a leading gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia.
Further information is found on Northgate Minerals' website.