The shareholders of Metallica Resources Inc. (TSX:MR), New Gold Inc. (TSX:NGD) and Peak Gold Ltd. (TSX-V:PIK) have approved the US$1.6 billion merger of the three companies.
The deal, which now only requires court approval, is expected to close June 30. It will see the creation of a new intermediate gold company, New Gold Inc., with operating cash flow and a strong pipeline of development stage assets.
It's expected to produce approximately 297,000 ounces of gold in 2008 and 335,000 ounces in 2009 with estimated cash costs of about US$240 per ounce.
Metallica Resources shareholders will own 45.7% and Peak Gold shareholders will own 37.8% of the new New Gold Inc. Robert Gallagher, CEO of Peak Gold, will become New Gold's CEO.
New Gold's share price range during the past week: between $7.63 and $8.15; 52-week high: $9.75; 52-week low: $4.10.