New $1.6 Billion Gold Producer in the Making
Source: Gold World (4/2/08)
Under a new deal, New Gold Inc. will acquire Metallica Resources Inc. and Peak Gold Ltd. to create a new $1.6 billion globally-diversified mid-tier gold producer.
The combined company will retain the name New Gold Inc. and own three producing gold mines in Australia, Brazil and Mexico and development-stage projects in Canada and Chile, including the New Afton mine, which is scheduled to commence production in late 2009.
The beefed-up New Gold is expected to provide significant cash-flow this year by producing almost 300,000 ounces of gold, and increasing to 335,000 ounces in 2009 with further production growth from the development of the New Afton and El Morro projects.
Once the deal is complete, New Gold will have $500 million in cash and short-term investments and a significant resource and reserve base including: Proved and Probable Reserves: 3.2 million ounces.