Western Goldfields Shareholders Approve Business Combination with New Gold
14 Mai 2009 - 11:56PM
PR Newswire (US)
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
http://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 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 Goldfields 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 Goldfields 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 Goldfields' 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
Goldfields' 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 include that New Gold and
Western Goldfields 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
Goldfields 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
Goldfields 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
Goldfields 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 Goldfields 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 Goldfields 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: Western
Goldfields Inc. CONTACT: For New Gold: Melanie Hennessey, Vice
President Investor Relations, Direct: (604) 639-0022, Toll-free: 1
(888) 315-9715, Email: ; For Western Goldfields: Hannes Portmann,
Director, Corporate Development and Investor Relations, Direct:
(416) 324-6014, Email:
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