New Gold shareholders say yes to merger with Western Goldfields

By Lisa Kerner

Charlotte, N.C., May 13 - New Gold Inc. said its shareholders "overwhelmingly" voted in favor of the company's merger with Western Goldfields Inc. at a special meeting on Wednesday.

The transaction was approved by 99.3% of the votes cast representing 65.9% of New Gold's outstanding shares, according to a New Gold news release.

Western Goldfields shareholders will vote on the transaction at a special meeting on Thursday. A final hearing by the Ontario Superior Court of Justice is expected to take place on May 27.

New Gold, a Vancouver, B.C.-based mining company, and Western Goldfields, a Toronto-based gold producer, said they expect the merger to close on or about June 1.

In March, New Gold announced that it agreed to acquire Western Goldfields in a stock-and-cash plan of arrangement.

Western Goldfields shareholders will receive one New Gold common share and C$0.0001 in cash per share of Western Goldfields.

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