Vancouver-based New Gold Inc. (TSX:NGD) has completed its $1.2 billion acquisition of Toronto's Western Goldfields Inc. (TSX:WGI).
The merger, which was announced in early March, creates a company with projected gold production of 335,000 ounces in 2009 and 400,000 ounces in 2010.
The company's assets include the:
Mesquite mine in California;
Cerro San Pedro mine in Mexico;
Peak Mines in Australia;
El Morrow project in Chile; and
New Afton project in B.C.
Under the all-share deal, New Gold acquired Western Goldfield at a price of one New Gold common share and $0.001 in cash for each Western Goldfield share. The valuation represented a 20.1% premium to the 20-day volume-weighted average price of Western Goldfield.
New Gold reported a 4.5% increase in revenue in its first quarter, which ended March 31, to $58.8 million from $56.2 million. Net income rose to $12.1 million from $9.8 million.
New Gold's share price range during the past week: between $2.77 and $3.29; 52-week high: $9.11; 52-week low: $0.94.