(All figures are in Canadian dollars unless otherwise
indicated)
VANCOUVER,
Oct. 16, 2013 /PRNewswire/ - New Gold
Inc. ("New Gold") (TSX: NGD) (NYSE MKT:NGD) today announces that it
has successfully completed its compulsory acquisition of the
approximately 2.5% of the outstanding shares of Rainy River
Resources Ltd. ("Rainy River") not previously acquired by New Gold.
As of the close of business on October 15,
2013, New Gold became the registered owner of 100% of the
outstanding shares of Rainy River.
Rainy River
shareholders who disposed of their shares in the compulsory
acquisition, and who elected, or were deemed to have elected, the
cash option will receive $2.00 in
cash and 0.239 New Gold shares for each Rainy River share. Those who elected the share
option will receive 0.5 New Gold shares for each Rainy River share. New Gold will pay an
aggregate of approximately $5.6
million and issue approximately 0.7 million` New Gold shares
in connection with the compulsory acquisition.
Rainy River
shareholders who have not delivered their share certificate(s) and
properly completed letter of transmittal to Computershare Trust
Company of Canada at the office
specified in the Notice of Compulsory Acquisition dated
August 12, 2013 must do so in order
to receive the cash and New Gold shares to which they are entitled.
Such Rainy River shareholders will
be deemed to have elected the cash option. The Notice of Compulsory
Acquisition and accompanying letter of transmittal is available
under Rainy River's profile at
www.sedar.com.
"We are pleased to have completed the
acquisition of Rainy River and
look forward to advancing it through the various stages of
development," stated Randall
Oliphant, Executive Chairman. "As we have managed to do
through the development of Mesquite, Cerro
San Pedro and, most recently, New Afton, we see scope to add
significant value to this project as we continue to move it
forward."
The company is in the process of completing its
detailed review and update of the Rainy River feasibility study as
well as advancing the permitting efforts for the project.
About New Gold Inc.
New Gold is an intermediate gold mining company.
The company has a portfolio of four producing assets and three
significant development projects. The New Afton Mine in
Canada, the Cerro San Pedro Mine
in Mexico, the Mesquite Mine in
the United States and the Peak
Mines in Australia provide the
company with its current production base. In addition, New Gold
owns 100% of the Blackwater and
Rainy River projects, both in
Canada, as well as 30% of the El
Morro project located in Chile.
New Gold's objective is to continue to establish itself as a
leading intermediate producer, focused on the environment and
sustainability. For further information on the company, please
visit www.newgold.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this news
release, including any information relating to New Gold's future
financial or operating performance may be deemed "forward looking".
All statements in this news release, other than statements of
historical fact, that address events or developments that New Gold
expects to occur, are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"projects", "potential", "believes" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation. Forward
looking statements in this news release include statements
regarding advancement of the development of Rainy River. All forward-looking statements in
this news release are based on the opinions and estimates of
management as of the date such statements are made and are subject
to important risk factors and uncertainties, many of which are
beyond New Gold's ability to control or predict. Forward-looking
statements are necessarily based on estimates and assumptions that
are inherently subject to known and unknown risks, uncertainties
and other factors that may cause actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. Such
factors include, without limitation: significant capital
requirements; fluctuations in the international currency markets
and in the rates of exchange of the currencies of Canada and the
United States; price volatility in the spot and forward
markets for commodities; discrepancies between actual and estimated
reserves and resources and between actual and estimated
metallurgical recoveries; changes in international, national and
local government legislation in Canada; taxation; controls, regulations and
political or economic developments in the countries in which New
Gold does or may carry on business; the speculative nature of
mineral exploration and development, including the risks of
obtaining and maintaining the validity and enforceability of the
necessary licenses and permits and complying with the permitting
requirements of each jurisdiction that New Gold operates; the
uncertainties inherent to current and future legal challenges the
company is or may become a party to; diminishing quantities or
grades of reserves; competition; loss of key employees; additional
funding requirements; actual results of current exploration
activities; changes in project parameters as plans continue to be
refined; accidents; labour disputes; defective title to mineral
claims or property or contests over claims to mineral properties;
and uncertainties with respect to obtaining all necessary surface
rights for the Rainy River Project. In addition, there are risks
and hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance to cover these risks) as
well as "Risk Factors" included in New Gold's disclosure documents
filed on and available at www.sedar.com.
Forward-looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All of
the forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
SOURCE New Gold Inc.