Vancouver's New Gold Inc. (TSX:NGD) has completed its three-way merger with Peak Gold Ltd. and Metallica Resources Inc., which creates a US$1.6 billion intermediate gold mining company.
It's expected to produce approximately 297,000 ounces of gold in 2008 and 335,000 in 2009. Estimated per-ounce cash costs are about US$240.
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 $7.39 and $8.04; 52-week high: $9.75; 52-week low: $4.01.