Another victim ...... in the current gold equity market malaise...... Rainy River Resources (RR) has a year high of $6.00 and three year high of $13.00/share....... and now taken over by New Gold for about $3.80/share when it was trading at $2.70s....... It's good if you buy in the lows, not that good if you were in the $4s - $10s?!
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New Gold to acquire Rainy River Resources
2013-05-31 06:42 MT - News Release
See News Release (C-NGD) New Gold Inc
Mr. Randall Oliphant of New Gold reports
NEW GOLD AGREES TO ACQUIRE RAINY RIVER RESOURCES GROWING GOLD RESERVES BY OVER 40 PERCENT PER SHARE
New Gold Inc. and Rainy River Resources Ltd. have entered into a definitive acquisition agreement, whereby New Gold will offer to acquire all of the outstanding common shares of Rainy River through a friendly takeover bid. Under the terms of the agreement, New Gold will offer, at the election of each holder of Rainy River common shares, 0.5 of a common share of New Gold or $3.83 in cash, in each case subject to proration. The offer represents a premium of 42 per cent over the closing price of the Rainy River shares on the Toronto Stock Exchange on May 30, 2013, the last day of trading prior to announcement of the offer, and a 67-per-cent premium to Rainy River's 20-day volume-weighted average trading price. The maximum number of New Gold shares to be issued will be approximately 25.8 million and the maximum cash consideration will be approximately $198-million. The offer values the fully diluted in-the-money share capital of Rainy River, net of Rainy River's current cash balance, at approximately $310-million.
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GLTA