Posted in | News | Gold | Mining Business

Northgate Minerals and Primero Mining to Merge

By Joel ScanlonJul 17 2011

Northgate Minerals Corp. and Primero Mining Corp. decided on merging to resolve problems on both sides. Northgate Minerals will give 1.5 shares for each share of Primero Mining. The share exchange will be worth Canadian $370 million. The combined market capitalization of the new company will be approximately Canadian $1.2 billion.

The companies released a joint statement saying that the new entity would benefit from the production and expansion at the PrimeroMining’s San Dimas mine in Mexico and from the Northgate Mineral’s Fosterville and Stawell gold mines in Australia and the Young Davidson gold project in Ontario.

The current president and Chief Executive Officer of Primero Mining, Joe Conway will lead the newly formed company while Terry Lyons will remain the chairman. According to My Lyons the deal has been in the works for the last three months.

The merger is still subject to shareholder approval for both the companies as well as regulatory government approvals. The share holder meetings are slated for September this year. Mr. Conway said in a statement that they were executing on their strategy of low-risk growth through this consolidation. He added that this was a unique opportunity that brings together two very complementary asset bases and groups of management.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

APA
Scanlon, Joel. (2019, March 19). Northgate Minerals and Primero Mining to Merge. AZoMining. Retrieved on November 26, 2024 from https://www.azomining.com/News.aspx?newsID=4499.
MLA
Scanlon, Joel. "Northgate Minerals and Primero Mining to Merge". AZoMining. 26 November 2024. <https://www.azomining.com/News.aspx?newsID=4499>.
Chicago
Scanlon, Joel. "Northgate Minerals and Primero Mining to Merge". AZoMining. https://www.azomining.com/News.aspx?newsID=4499. (accessed November 26, 2024).
Harvard
Scanlon, Joel. 2019. Northgate Minerals and Primero Mining to Merge. AZoMining, viewed 26 November 2024, https://www.azomining.com/News.aspx?newsID=4499.