Primero Announces Termination of Arrangement Agreement With Northgate and Receipt of $25 Million Break-Fee
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Press Release Source: Primero Mining Corp. On Monday August 29, 2011, 6:30 am EDT
TORONTO, ONTARIO--(Marketwire -08/29/11)- Primero Mining Corp. ("Primero" or the "Company") (TSX:P.TO - News)(NYSE: PPP - News) announced today that the arrangement agreement with Northgate Minerals Corporation ("Northgate"), dated July 12, 2011, has been terminated.
Northgate has advised Primero that its Board of Directors received an acquisition proposal (the "AuRico Proposal") from AuRico Gold Inc. ("AuRico") pursuant to which AuRico would acquire all of the issued and outstanding shares of Northgate. Northgate also advised Primero that its Board of Directors determined that the AuRico Proposal is a "Superior Proposal" within the meaning of the Arrangement Agreement dated July 12, 2011, made between Primero and Northgate.
Primero advises that it has waived its right to match the AuRico Proposal. As provided for in the Arrangement Agreement, a termination fee of C$25,000,000 before transaction costs, was paid by Northgate and received by Primero.
As a result, the formerly scheduled Special Meeting of Shareholders of Primero, scheduled for September 21, 2011, is cancelled.
About Primero
Primero Mining Corp. is a Canadian-based precious metals producer and owns 100% of the San Dimas gold-silver mine in Mexico. Primero offers immediate exposure to un-hedged, low cash cost gold production with a substantial resource base in a politically stable jurisdiction. The Company intends to become an intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.
Primero's website is www.primeromining.com. |
