New Gold successfully complete acquisition
New Gold Inc. announced yesterday it successfully has completed its compulsory acquisition of the roughly 2.5 percent of the outstanding shares of Rainy River Resources Ltd. not previously acquired by New Gold.
As of the close of business on Oct. 15, New Gold became the registered owner of 100 percent of the outstanding shares of Rainy River.
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 roughly $5.6 million and issue about 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 Aug. 12, 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,” said New Gold executive chairman Randall Oliphant.
“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,” he added.
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.