Northgate updates progress on Perseverance acquisition



    VANCOUVER, Dec. 18 /CNW/ - Northgate Minerals Corporation (TSX: NGX,
AMEX:   NXG) is pleased to announce that the holders of the convertible
subordinated notes ("Noteholders") of Perseverance Corporation Limited
("Perseverance") have approved the extraordinary resolution as set out in the
Meeting of Noteholders held on December 17, 2007.
    Under the terms defined in the resolution, the convertible subordinated
notes will be subject to early redemption and Perseverance Noteholders will
receive A$100,000 (face value) plus any accrued interest per subordinated
note, provided that the schemes of arrangement between Perseverance and its
shareholders and warrantholders (referred to in Australia as optionholders)
are approved. The share scheme and option scheme meetings of Perseverance's
shareholders and optionholders, respectively, are scheduled to take place on
January 18, 2008.
    Ken Stowe, President & CEO, commented, "The approval of the resolution by
Perseverance Noteholders is an important step in completing our acquisition of
this significant Australian gold producer. With the unanimous recommendation
by Perseverance's Board and positive Noteholder support, we look forward to
the successful completion of this deal in mid-February 2008."
    Further information about the proposed acquisition of Perseverance can be
found in Northgate's press release dated October 29, 2007.

    NORTHGATE MINERALS CORPORATION is a gold and copper mining company
focused on operations and opportunities in the Americas and Australia. The
Corporation's principal assets are the Kemess South mine in north-central
British Columbia and the Young-Davidson property in northern Ontario. With the
proposed acquisition of Perseverance Corporation Limited, the addition of two
operating mines will create a leading multi-mine, mid-tier gold producer, with
over 430,000 ounces of gold production in 2008. Northgate is listed on the
Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange
under the symbol NXG.

    NOTE TO SECURITY HOLDERS:

    This news release does not constitute an offer to buy or an invitation to
sell, or the solicitation of an offer to buy or invitation to sell, any of the
securities of Northgate or Perseverance. Information about Perseverance is
provided by Perseverance and Northgate has not verified its accuracy or
completeness.
    Subject to the terms and conditions set forth in the Merger
Implementation Agreement relating to the proposed transaction, Perseverance
intends to mail a scheme booklet (which will include an explanatory statement
and independent expert's report) to its shareholders. Perseverance
shareholders and other interested parties are strongly advised to read these
documents, as well as any amendments and supplements to these documents, when
they become available because they will contain important information.

    FORWARD-LOOKING STATEMENTS:

    This news release contains certain "forward-looking statements" and
"forward-looking information" under applicable Canadian and U.S. securities
laws. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," or "continue" or the negative thereof or
variations thereon or similar terminology. Forward-looking statements are
necessarily based on a number of estimates and assumptions that are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. Certain of the statements made herein, including any
information as to the timing and completion of the proposed transaction, the
potential benefits thereof, the future activities of and developments related
to Perseverance and Northgate prior to the proposed transaction and the
combined company after the proposed transaction, market position, and future
financial or operating performance of Northgate or Perseverance, are
forward-looking and subject to important risk factors and uncertainties, many
of which are beyond the corporations' ability to control or predict. Known and
unknown factors could cause actual results to differ materially from those
projected in the forward-looking statements.
    Such factors include, among others: gold price volatility; impact of any
hedging activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and estimated reserves
and resources and between actual and estimated metallurgical recoveries; costs
of production, capital expenditures, costs and timing of construction and the
development of new deposits, success of exploration activities and permitting
time lines; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in any of the
countries in which either corporation does or may carry out business in the
future; risks of sovereign investment; the speculative nature of gold
exploration, development and mining, including the risks of obtaining
necessary licenses and permits; dilution; competition; loss of key employees;
additional funding requirements; and defective title to mineral claims or
property. In addition, there are risks and hazards associated with the
business of gold exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance, to cover these risks), as well as
the factors described or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31, 2006 or
under the heading "Risks and Uncertainties" in Northgate's 2006 annual report,
both of which are available on SEDAR at www.sedar.com, and which should be
reviewed in conjunction with this document. Accordingly, readers should not
place undue reliance on forward-looking statements. Neither corporation
undertakes any obligation to update publicly or release any revisions to
forward-looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events.

    For further information about Northgate, please visit
www.northgateminerals.com. For further information about Perseverance, please
visit www.perseverance.com.au.





For further information:

For further information: Ms. Keren R. Yun, Manager, Investor Relations,
(416) 216-2781, kyun@northgateminerals.com

Organization Profile

Northgate Minerals Corporation

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890