Western Goldfields Shareholders Approve Business Combination with New Gold
On Thursday May 14, 2009, 5:56 pm EDT
- VANCOUVER and TORONTO, May 14 /PRNewswire-FirstCall/ - New Gold Inc. (TSX and NYSE Amex: NGD) ("New Gold") and Western Goldfields Inc. (TSX: WGI and NYSE Amex: WGW) ("Western Goldfields") are pleased to announce that Western Goldfields shareholders have voted in favour of the previously announced business combination between Western Goldfields and New Gold (the "Transaction") at a special meeting of Western Goldfields shareholders held today in Toronto. The Transaction was approved by 84.2% of the votes cast representing 59.4% of Western Goldfields' outstanding shares. Yesterday, the Transaction was also approved at a special meeting of New Gold shareholders.
"We are extremely excited by the outcome of yesterday's and today's shareholder votes and the fact that our shareholders, collectively, so strongly support this transaction," said Randall Oliphant, Chairman of Western Goldfields. "The integration process between the companies is already well underway and we can't wait to utilize the strength of the combined board and management together with our larger platform as an intermediate producer to continue growing the value of this company."
"As a combined company we will have three producing assets, a very exciting, fully funded development project in New Afton and a strategic interest in El Morro, all of which are located in mining friendly jurisdictions," added Robert Gallagher, President and Chief Executive Officer of New Gold. "We believe this collection of assets, with growing production and cash flow, is a great base from which to continue pursuing our vision of becoming a million ounce gold producer."
The completion of the Transaction remains subject to a final hearing by the Ontario Superior Court of Justice (Commercial List) currently expected to take place on May 27, 2009, with closing of the Transaction expected to occur on or about June 1, 2009. The Transaction is structured as a Plan of Arrangement under the Business Corporations Act (Ontario).
Upon completion of the transaction, the combined company is expected to produce between 330,000 and 360,000 ounces of gold in 2009, growing to over 400,000 ounces in 2012, and will have significant reserves and resources with a strong portfolio of mining, development and exploration assets in mining friendly jurisdictions.
About New Gold
New Gold is an intermediate gold mining company with two operating assets: the Cerro San Pedro Mine in Mexico and the Peak Mines in Australia. In addition, the company has development projects in Canada and Chile. For further information on New Gold, please visit www.newgold.com.
About Western Goldfields
Western Goldfields is a gold production and exploration company with a focus on precious metal mining opportunities in North America. The Mesquite Mine, currently Western Goldfields' sole asset, was brought into production in January 2008. For further information on Western Goldfields, please visit www.westerngoldfields.com.
