VANCOUVER – On June 29 the Supreme Court of British Columbia granted a permanent injunction enforcing the confidentiality and standstill agreement between NORTHGATE MINERALS and AURIZON MINES (both of Vancouver), entered into in October 2005. The decision effectively prevents Northgate from proceeding with its hostile takeover bid for Aurizon.
The main asset of Aurizon is its 100%-owned Casa Berardi gold project in northwest Quebec. The fully-funded project is on budget and on schedule to commence production in late 2006. Casa Berardi has an initial mine life of more than six years based on reserves of 1.2 million ounces of gold.
Northgate’s response, issued the next day, was that it intends to file an appeal of this decision, seek to expedite the hearing and obtain a stay of the injunction pending the outcome of the appeal.
Stay tuned for further developments at www.aurizon.com and www.northgateminerals.com.