AuRico Gold (AUQ.TO), a Mexico-focused gold miner in a drive to reposition itself, said on Monday it would purchase Northgate Minerals (NGX.TO) in an all-stock deal worth C$1.46 billion ($1.5 billion). The acquisition is the latest in a string of deals involving Canadian gold miners as prices for the metal climb faster than even many of the most bullish forecasts. If approved, the deal would see AuRico's gold resource rise from 10.3 million gold equivalent ounces to almost 19 million. Annual production would increase to 470,000 ounces in 2011 from 280,000, and the combined output would be more than 730,000 ounces by 2013. AuRico, whose name is a combination of the letters "Au", the atomic symbol for gold, and "Rico", the Spanish word for rich, changed its name from Gammon Gold in May, a month after buying Capital Gold for C$420 million. That followed a drawn out battle for the company with smaller rival Timmins Gold (TMM.TO).
Shares of AUQ fell by 12.86% or $-1.79/share to $12.13. In the past year, the shares have traded as low as $6.15 and as high as $14.17. On average, 1631330 shares of AUQ exchange hands on a given day and today's volume is recorded at 2327979.
Shares of TMM traded higher by 11.49% or $0.2/share to $1.94. In the past year, the shares have traded as low as $1.25 and as high as $3.25. On average, 9092 shares of TMM exchange hands on a given day and today's volume is recorded at 109.
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