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New Gold
Shareholders Approve Business Combination with Western Goldfields
Vancouver and Toronto, May 13, 2009 - New Gold Inc. (TSX and NYSE
Amex: NGD) ("New Gold") and Western Goldfields Inc. (TSX: WGI
and NYSE Amex: WGW) ("Western Goldfields") are pleased to
announce that New Gold shareholders have overwhelmingly voted in favour
of the previously announced business combination between New Gold and
Western Goldfields (the "Transaction") at a special meeting of
New Gold shareholders held today in Vancouver. The Transaction was
approved by 99.3% of the votes cast representing 65.9% of New Gold's
outstanding shares.
The completion of the Transaction remains subject to approval of Western
Goldfields shareholders at a meeting to be held in Toronto tomorrow, May 14th and a final
hearing by the Ontario Superior Court of Justice (Commercial List)
currently expected to take place on May 27, 2009, with closing of the
Transaction expected to occur on or about June 1, 2009. The Transaction
is structured as a Plan of Arrangement under the Business Corporations
Act (Ontario).
Upon completion of the transaction, the combined company is expected to
produce between 330,000 and 360,000 ounces
of gold in 2009, growing to over 400,000 ounces
in 2012, and will have significant reserves and resources with a strong
portfolio of mining, development and exploration assets in mining
friendly jurisdictions.
About New Gold
New Gold is an intermediate gold mining company with two operating
assets; the Cerro San Pedro Mine in Mexico
and the Peak Mines in Australia.
In addition the company has development projects in Canada and Chile. For further
information on New Gold, please visit www.newgold.com.
About Western Goldfields
Western Goldfields is a gold production and exploration company with a
focus on precious metal mining opportunities in North
America. The Mesquite Mine, currently Western Goldfields'
sole asset, was brought into production in January 2008. For
further information on Western Goldfields, please visit www.westerngoldfields.com.
CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this press release, including any
information relating to the proposed transaction and New Gold or Western
future financial or operating performance may be deemed "forward
looking". All statements in this press release, other than
statements of historical fact, that address events or developments that
New Gold or Western expects to occur, are "forward-looking
statements". Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the
words "expects", "does not expect", "plans",
"anticipates", "does not anticipate",
"believes", "intends", "estimates",
"projects", "potential", "scheduled",
"forecast", "budget" and similar expressions, or that
events or conditions "will", "would",
"may", "could", "should" or
"might" occur. All such forward-looking statements are subject
to important risk factors and uncertainties, many of which are beyond New
Gold or Western' ability to control or predict. Forward-looking
statements are necessarily based on estimates and assumptions that are inherently
subject to known and unknown risks, uncertainties and other factors that
may cause New Gold or Western' actual results, level of activity,
performance or achievements to be materially different from those
expressed or implied by such forward-looking statements. Assumptions upon
which such forward looking statements are based on include that New Gold
and Western will be able to satisfy the conditions in the Business
Combination Agreement, that the due diligence investigations of each
party will not identify any materially adverse facts or circumstances,
that all third party regulatory and governmental approvals to the
transactions will be obtained and all other conditions to completion of
the transaction will be satisfied or waived. Many of these assumptions
are based on factors and events that are not within the control of New
Gold and Western and there is no assurance they will prove to be correct.
Such factors include, without limitation: capital requirements;
fluctuations in the international currency markets and in the rates of
exchange of the currencies of Canada, the United States, Australia,
Brazil, Mexico and Chile; price volatility in the spot and forward
markets for commodities; impact of any hedging activities, including
margin limits and margin calls; discrepancies between actual and
estimated production, between actual and estimated reserves and resources
and between actual and estimated metallurgical recoveries; changes in
national and local government legislation in Canada, the United States,
Australia, Brazil, Mexico and Chile or any other country in which New
Gold and Western currently or may in the future carry on business;
taxation; controls, regulations and political or economic developments in
the countries in which New Gold and Western does or may carry on
business; the speculative nature of mineral exploration and development,
including the risks of obtaining necessary licenses and permits;
diminishing quantities or grades of reserves; competition; loss of key
employees; additional funding requirements; actual results of current
exploration or reclamation activities; changes in project parameters as
plans continue to be refined; accidents; labour disputes; defective title
to mineral claims or property or contests over claims to mineral
properties. In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses (and
the risk of inadequate insurance or inability to obtain insurance, to
cover these risks) as well as "Risks and Uncertainties"
included in the Annual Information Form/10-K and MD&A for each of New
Gold and Western available at www.sedar.com. Forward-looking statements
are not guarantees of future performance, and actual results and future
events could materially differ from those anticipated in such statements.
All of the forward-looking statements contained in this press release are
qualified by these cautionary statements. New Gold and Western expressly
disclaim any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
events or otherwise, except in accordance with applicable securities
laws.
For further information please contact:
For New Gold
M�lanie Hennessey
Vice President Investor Relations
Direct: +1 (604) 639-0022
Toll-free: +1 (888) 315-9715
Email: info@newgold.com
or
Keith Schaefer
Vanguard Shareholder Solutions
Tel: 604 608 0824
Toll Free: 1 866 398 1088
For Western Goldfields
Hannes Portmann
Director, Corporate Development and Investor Relations
Direct: +1 (416)-324-6014
Email: hportmann@westerngoldfields.com
New Gold Announces First Quarter 2009 Results
(All
figures are in US dollars unless otherwise stated)
May 12, 2009 - VANCOUVER, BC - New Gold Inc. ("New
Gold") (TSX and NYSE AMEX US - NGD) today announced unaudited
financial results and operational results for the quarter ended March 31,
2009 and an update on the business combination with Western Goldfields
Inc.
Q1 2009 Highlights
� Net earnings of $12.1 million or $0.06 per share
� Cash flow from operations of $7.7 million
� Gold production of 54,938 ounces
� Gold sales of 55,397 ounces
at a total cash cost of $513 per ounce, net of by-product sales(1)
� Cash and cash equivalents of $137 million
� Reduced debt position by C$50 million through the buy
back of a portion of New Gold's Senior Secured Notes for cash consideration
of C$30 million, reducing debt position to C$242 million
� Announced business combination with Western
Goldfields Inc., which, if approved, targets the combined gold production
forecast at 330,000
ounces
As disclosed in New Gold's news release issued on April 21, 2009, sales
were higher and cash cost(1) was lower than expected. Guidance
remains unchanged with 190,000 to 210,000 ounces
of gold production at total cash cost of $465 to $485 per ounce, net of
by product sales.
"We are pleased to report excellent operational performance for the
first quarter of 2009, performing in line with our expectations. This
reflects the quality of our team and is consistent with management's
commitment to delivering on our operational targets," said Robert Gallagher,
President and Chief Executive Officer. "As we look forward to the
business combination with Western Goldfields, we remain focused on our
operational objectives, as well as executing on our exciting growth
strategy and delivering on our vision of becoming a million ounce
producer by 2012."
View full press release: New
Gold Announces First Quarter 2009 Results
For more information please contact:
Keith Schaefer
Vanguard Shareholder Solutions
Tel: 604 608 0824
Toll Free: 1 866 398 1088
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