Vancouver's Northgate Minerals Corp. (TSX:NGX) has completed its US$257 million acquisition of Australia's Perseverance Corp.
The deal doubles Northgate's gold production to 400,000 ounces of production a year from operations in Canada and Australia.
Perseverance had agreed to the deal because it needed additional capital to fund future development of its mines, and preferred being acquired than raising additional capital through a large and dilutive equity offering.
Results from its newly acquired operations will be reported in its consolidated financial results for the period ending March 31, 2008. Northgate's share price range during the past week: between $2.78 and $2.95; 52-week high: $4.55; 52-week low: $2.45.