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New Gold Inc. (TSX:NGD,NYSEMKT:NGD) announced that it has entered into a definitive agreement under which it will acquire Bayfield Ventures Corp. (TSXV:BYV).
New Gold Inc. (TSX:NGD,NYSEMKT:NGD) announced that it has entered into a definitive agreement under which it will acquire Bayfield Ventures Corp. (TSXV:BYV).
As quoted in the press release:
Under the terms of the Arrangement, Bayfield shareholders will receive 0.0477 of a New Gold common share for each Bayfield common share held. The offer values Bayfield at $0.21 per common share or approximately $16.6 million, representing a 50% premium to Bayfield’s November 7, 2014 closing price and a 47% premium based on each company’s 20-day volume weighted average trading price. It is expected that upon completion of the Arrangement, approximately 3.8 million New Gold common shares will be issued in consideration for Bayfield’s outstanding shares, which represents 0.8% of New Gold’s currently outstanding common shares. Following completion of the Arrangement, in accordance with their terms, Bayfield’s outstanding warrants will be adjusted based on the exchange ratio and become exercisable for New Gold common shares.
Hannes Portmann, vice president of corporate development at New Gold, commented:
The acquisition of Bayfield further consolidates our position in the Rainy River district. By adding these three properties within and adjacent to our project area, it simplifies our development plans, increases our gold and silver mineral resources and adds to our prospective land package.
Click here to read the full New Gold Inc. (TSX:NGD,NYSEMKT:NGD) press release.