Mexico-focused miner AuRico Gold (AUQ.TO) has offered to purchase Northgate Minerals (NGX.TO) for C$1.46 billion ($1.5 billion) in a friendly deal that would nearly double its output and expand its geographic reach as gold prices soar. The takoever offer, a 62 percent premium to Northgate's closing share price on Friday, is the latest in a string of deals involving Canadian gold miners as prices for the metal climb faster than many of the most bullish analysts had forecast. If approved it will see AuRico's gold resource rise from 10.3 million gold equivalent ounces to almost 19 million and add operating mines in Canada and Australia to its portfolio. 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.
Shares of AUQ fell by 18.61% or $-2.59/share to $11.33. 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 5462411.
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