UPDATE 1-AuRico to buy Northgate Minerals for C$1.46 bln

Mon Aug 29, 2011 6:34am EDT

Aug 29 (Reuters) - AuRico Gold said it will buy Northgate Minerals for C$1.46 billion ($1.48 billion) to create an intermediate gold company.

Under the deal, AuRico will buy all shares of Northgate on the basis of 0.365 AuRico shares per Northgate share.

AuRico, which changed its name from Gammon Gold in May, said the new company will have 5 operating gold mines, a sixth mine targeting production in 2012 and 3 gold development projects in Mexico, Canada, and Australia. ($1 = 0.989 Canadian Dollars) (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Roshni Menon)

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