New Gold Shareholders Approve Business Combination with Western Goldfields
13 Mai 2009 - 10:09PM
PR Newswire (US)
VANCOUVER and TORONTO, May 13 /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 New Gold shareholders have overwhelmingly
voted in favour of the previously announced business combination
between New Gold and Western Goldfields (the "Transaction") at a
special meeting of New Gold shareholders held today in Vancouver.
The Transaction was approved by 99.3% of the votes cast
representing 65.9% of New Gold's outstanding shares. The completion
of the Transaction remains subject to approval of Western
Goldfields shareholders at a meeting to be held in Toronto
tomorrow, May 14th and 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
http://www.newgold.com/. About Western 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 http://www.westerngoldfields.com/. CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS Certain information contained in this
press release, including any information relating to the proposed
transaction and New Gold or Western future financial or operating
performance may be deemed "forward looking". All statements in this
press release, other than statements of historical fact, that
address events or developments that New Gold or Western 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 words "expects", "does not expect",
"plans", "anticipates", "does not anticipate", "believes",
"intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions, or that events or
conditions "will", "would", "may", "could", "should" or "might"
occur. All such forward-looking statements are subject to important
risk factors and uncertainties, many of which are beyond New Gold
or Western' 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 New Gold or Western' actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Assumptions upon which such forward
looking statements are based on include that New Gold and Western
will be able to satisfy the conditions in the Business Combination
Agreement, that the due diligence investigations of each party will
not identify any materially adverse facts or circumstances, that
all third party regulatory and governmental approvals to the
transactions will be obtained and all other conditions to
completion of the transaction will be satisfied or waived. Many of
these assumptions are based on factors and events that are not
within the control of New Gold and Western and there is no
assurance they will prove to be correct. Such factors include,
without limitation: capital requirements; fluctuations in the
international currency markets and in the rates of exchange of the
currencies of Canada, the United States, Australia, Brazil, Mexico
and Chile; price volatility in the spot and forward markets for
commodities; impact of any hedging activities, including margin
limits and margin calls; discrepancies between actual and estimated
production, between actual and estimated reserves and resources and
between actual and estimated metallurgical recoveries; changes in
national and local government legislation in Canada, the United
States, Australia, Brazil, Mexico and Chile or any other country in
which New Gold and Western currently or may in the future carry on
business; taxation; controls, regulations and political or economic
developments in the countries in which New Gold and Western does or
may carry on business; the speculative nature of mineral
exploration and development, including the risks of obtaining
necessary licenses and permits; diminishing quantities or grades of
reserves; competition; loss of key employees; additional funding
requirements; actual results of current exploration or reclamation
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.
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 "Risks and
Uncertainties" included in the Annual Information Form/10-K and
MD&A for each of New Gold and Western available at
http://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
press release are qualified by these cautionary statements. New
Gold and Western expressly disclaim 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. DATASOURCE: New Gold
Inc. CONTACT: For New Gold: Melanie Hennessey, Vice President
Investor Relations, Direct: (604) 639-0022, Toll-free: (888)
315-9715, Email: ; For Western Goldfields: Hannes Portmann,
Director, Corporate Development and Investor Relations, Direct:
(416) 324-6014, Email:
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