Categories: Precious Metals
Topics: General Precious Metals

NP says New Gold adds Mesquite into its asset mix

 The National Post reports that New Gold has struck a deal to buy Western Goldfields, allowing New Gold to add Western Goldfields' Mesquite mine in California to its stable of gold properties. The Post's Peter Koven writes the all-stock deal, worth about $276-million (U.S.), leaves New Gold with three producing mines in politically friendly jurisdictions (all figures Canadian unless otherwise stated). Last year, New Gold completed a three-way merger with junior miners Metallica Resources and Peak Gold. That deal was the brainchild of mining veteran Pierre Lassonde, who pictured New Gold as a mid-tier player that could keep consolidating the sector. This is the company's first major acquisition since then. The offer is 19 per cent higher than Western Goldfields' closing price Tuesday. Western Goldfields chairman Randall Oliphant was formerly chief executive officer of Barrick Gold. He will be the executive chairman of New Gold. New Gold stock shed 25 cents to finish Wednesday at $2.05. The Post reported on Oct. 24 that Millennia III North American Small Company managers Martin Dufresne and Patrick Potvin had sold all their New Gold stock. It was then trading at $1.28.