AuRico Gold (AUQ) a Buy After (NXG) Bid?

After the bid by AuRico Gold (NYSE:AUQ) for Northgate Minerals (NYSE:NXG) for all of the issued and outstanding common shares of Northgate for 0.365 AuRico shares per Northgate share, a 45 percent premium for Northgate shareholders, shares of each company went in opposite directions.

AuRico Gold was getting hammered after paying the 45 percent premium, falling to $11.23, down $2.69, or 19.32 percent, as of 2:53 PM EDT. That suggests it may be a good time to look at the shares.

The new entity, if approved, would include five operating gold mines, with another one scheduled to begin production in 2012. There are also three other gold projects in development in Australia, Canada and Mexico.

Combined, the company would produce about 470,000 ounces of gold in 2011, an increase over the prior 280,000 ounces.

Northgate was trading at $3.9850, gaining $0.8350, or 26.51 percent, as of 2:57 PM EDT.