I only have experience with Blogs, electronic publications. But it is an excellent idea. I applaud this kind of inductive learning.
Make sure they assign roles and set deadlines. Brainstorm topics, the parts of the paper. Find online some examples, for example the Guardian produces an excellent Junior edition (don't have a link sorry).
Make sure to give them enough time in class to meet/think/plan, so it gets off the ground. Most importantly, they should experience success and make sure to nurture that most precious part of the writing process....sharing/publishing. This will help it mothball.
Hope this helps a little.
EFL Classroom 2.0