Transaction|October 5, 2010
Northgate Minerals completes convertible notes offering
Torys acted as counsel to Northgate Minerals in Toronto and New York with a team that included Kevin Morris, Alison Harnick, Daniel Raglan, Jonathan Wiener, Heding Yang, Gabi Mandowsky, Leah Frank, Brian Cox (corporate and securities), Corrado Cardarelli, Richard Johnson, Peter Keenan, David Mattingly and Ari Feder (tax), Don Roger (real estate), Dennis Mahony (environmental) and John Terry (First Nations issues).
On October 5, 2010, Northgate Minerals Corporation (Northgate) announced the closing of its previously announced offering of US$150 million convertible notes due 2016. The convertible notes bear interest at a rate of 3.5% per year and are convertible into common shares of Northgate at a conversion price of US$4.08 per share. Northgate may, in lieu of delivery of common shares upon conversion of all or a portion of the convertible notes, elect to pay cash or a combination of cash and common shares. The net proceeds from the offering was approximately US$144.1 million.
The underwriting syndicate was led by UBS Securities LLC acting as the sole bookrunning manager and includes Canaccord Genuity Corp, CIBC, Mackie Research Capital Corporation, Cormark Securities Inc., Credit Suisse Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc. and TD Securities Inc. Northgate also granted the underwriters a 30-day option to purchase up to an additional US$20 million of convertible notes to cover over-allotments, which was exercised in full as of October 12, 2010, increasing the total offering size to US$170 million.
Northgate intends to use the net proceeds of the offering to finance a portion of the development costs of its Young-Davidson gold mine near Matachewan, Ontario. The Young-Davidson mine is currently scheduled to begin producing gold in early 2012.
Northgate Minerals is a Canadian-based gold and copper producing company with operations, development projects and exploration properties in Canada and Australia.
Further information is found on Northgate's website.
The underwriting syndicate was led by UBS Securities LLC acting as the sole bookrunning manager and includes Canaccord Genuity Corp, CIBC, Mackie Research Capital Corporation, Cormark Securities Inc., Credit Suisse Securities (Canada) Inc., Macquarie Capital Markets Canada Ltd., Scotia Capital Inc. and TD Securities Inc. Northgate also granted the underwriters a 30-day option to purchase up to an additional US$20 million of convertible notes to cover over-allotments, which was exercised in full as of October 12, 2010, increasing the total offering size to US$170 million.
Northgate intends to use the net proceeds of the offering to finance a portion of the development costs of its Young-Davidson gold mine near Matachewan, Ontario. The Young-Davidson mine is currently scheduled to begin producing gold in early 2012.
Northgate Minerals is a Canadian-based gold and copper producing company with operations, development projects and exploration properties in Canada and Australia.
Further information is found on Northgate's website.