Western Goldfields Shareholders Approve Business Combination with New Gold
- On Thursday May 14, 2009, 5:56 pm EDT
VANCOUVER and TORONTO, May 14 /CNW/ - 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 Goldfieldsshareholders have voted in favour of the previously announced businesscombination between Western Goldfields and New Gold (the "Transaction") at aspecial meeting of Western Goldfields shareholders held today in Toronto. TheTransaction was approved by 84.2% of the votes cast representing 59.4% ofWestern Goldfields' outstanding shares. Yesterday, the Transaction was alsoapproved at a special meeting of New Gold shareholders.
"We are extremely excited by the outcome of yesterday's and today'sshareholder votes and the fact that our shareholders, collectively, sostrongly support this transaction," said Randall Oliphant, Chairman of WesternGoldfields. "The integration process between the companies is already wellunderway and we can't wait to utilize the strength of the combined board andmanagement together with our larger platform as an intermediate producer tocontinue growing the value of this company."
"As a combined company we will have three producing assets, a veryexciting, fully funded development project in New Afton and a strategicinterest in El Morro, all of which are located in mining friendlyjurisdictions," added Robert Gallagher, President and Chief Executive Officerof New Gold. "We believe this collection of assets, with growing productionand cash flow, is a great base from which to continue pursuing our vision ofbecoming a million ounce gold producer."
The completion of the Transaction remains subject to a final hearing bythe Ontario Superior Court of Justice (Commercial List) currently expected totake place on May 27, 2009, with closing of the Transaction expected to occuron or about June 1, 2009. The Transaction is structured as a Plan ofArrangement under the Business Corporations Act (Ontario).
Upon completion of the transaction, the combined company is expected toproduce between 330,000 and 360,000 ounces of gold in 2009, growing to over400,000 ounces in 2012, and will have significant reserves and resources witha strong portfolio of mining, development and exploration assets in miningfriendly jurisdictions.
About New Gold
New Gold is an intermediate gold mining company with two operatingassets: the Cerro San Pedro Mine in Mexico and the Peak Mines in Australia. Inaddition, the company has development projects in Canada and Chile. Forfurther information on New Gold, please visit www.newgold.com.
About Western Goldfields
Western Goldfields is a gold production and exploration company with afocus on precious metal mining opportunities in North America. The MesquiteMine, currently Western Goldfields' sole asset, was brought into production inJanuary 2008. For further information on Western Goldfields, please visitwww.westerngoldfields.com.