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Re: News Release - Tuesday, March 25, 2008
New Gold Inc. , Abacus Mining and Exploration Corp. and Teck
Cominco Limited sign definitive Agreements respecting Afton-Ajax
Cu-Au district
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March 25, 2008, Vancouver, British Columbia - New Gold Inc.
(NGD:TSX/AMEX) is pleased to announce that it has signed two definitive
agreements, one with Abacus Mining and Exploration Corp. ("Abacus")
(the "Two Party Agreement") and the other with Abacus and Teck Cominco
Limited ("Teck") (the "Three Party Agreement") addressing the
co-operative development of their respective assets in the Afton-Ajax
Cu-Au district. The two agreements were the subject of Letters of
Intent, the particulars of which were described in a Press Release
dated October 30, 2007.
The Three Party Agreement is intended to ensure that New Gold and
Abacus are able to freely develop their assets in the area of the New
Afton Project. This agreement will ensure that Abacus maintains the
rights of access previously granted to it by Teck and provides Abacus
with shared use of New Gold's water pipeline in the event that it
develops a new milling operation. New Gold will be provided access
from the Trans-Canada Highway to its New Afton operations over a small
portion of the land which Abacus is purchasing from Teck around the old
Afton mill building.
The Two Party Agreement is intended to ensure that any economic
mineralization within and surrounding the past producing Ajax pits, is
explored, delineated and developed in the most effective manner. As a
result the Two Party Agreement is intended to grant Abacus an option to
explore for, and potentially develop, mineralization in the area
surrounding Abacus' Ajax Mineral Claims, which overly the
past-producing Ajax pits. Under this agreement Abacus must spend $2.5
million over 2 years over a portion of New Gold's Mineral claims
surrounding the Ajax pits, and complete a preliminary economic study
within 6 months following the 2 year period. If economic
mineralization is established in the area between the pits, it will be
developed as a joint venture between the two companies. In the event
of an open pit operation the interests will be 60:40 in favour of
Abacus who will be the operator. In the event of an underground
operation the interests will be 60:40 in favour of New Gold who will be
the operator.
(All dollar amounts in Canadian dollars)
For more information contact:
Mr. Cliff Davis, President and Chief Executive Officer or Ms. Laura
Sandilands, Manager of Investor Relations
New Gold Inc.
70 University Avenue
Toronto, Ontario
M5J 2M4
(416) 977-1067
www.newgoldinc.com
Associated File:
http://www.newgoldinc.com/i/pdf/03-25-08_Press-Release.pdf
52 KB in size, approx. 11 seconds to download at 56.6Kbps
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Copyright (c) 2008 NEW GOLD INC. (TSX/AMEX:NGD) All rights reserved.
For more information visit our website at http://www.newgoldinc.com/ or
send mailto:invest@newgoldinc.com
Message sent on Tue Mar 25, 2008 at 6:08:10 AM Pacific Time
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