New Gold, Metallica Resources and Peak Gold combine in transaction valued at $1.6 billion

By Lisa Kerner

Charlotte, N.C., June 30 - New Gold Inc. completed its business combination with Peak Gold Ltd. and Metallica Resources Inc., it was announced on Monday.

Common shares of both Peak Gold and Metallica will begin trading as New Gold (TSX and Amex: NGD) at market open on July 7. Also on July 7, the warrants of both Peak Gold and Metallica will begin trading as New Gold on the Toronto Stock Exchange.

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.

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.

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