Combination of Metallica Resources, New Gold, Peak Gold expected to close by June 30

By Lisa Kerner

Charlotte, N.C., June 18 - The respective shareholders of Metallica Resources Inc., New Gold Inc. and Peak Gold Ltd. approved the business combination of the three companies at meetings held June 17.

According to a Peak Gold news release, the companies expect the transaction to close on or about June 30, subject to court approval.

Under the terms of the transaction, valued at $1.6 billion, Metallica Resources shareholders will receive nine-tenths of a common share of New Gold for each common share of Metallica Resources held.

Shareholders of Peak Gold will receive one-tenth of a common share of New Gold for each common share of Peak Gold held, it was previously reported.

The combined company will be called New Gold Inc., a Metallica Resources news release said.

Metallica Resources, located in Toronto, engages in the acquisition, exploration and development of precious and base metal properties, principally gold and silver, in Mexico, Chile and the United States.

New Gold is a Vancouver, B.C.-based mining company.

Based in Vancouver, B.C., Peak Gold is an intermediate gold producer with two operating assets: Peak Mines in New South Wales, Australia, and Amapari mine in Amapa State, Brazil.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.