| Rainy River Resources Ltd. - RR.t key asset is its large, 100%-owned, advanced exploration stage Rainy River gold project, hosting a NI43-101 compliant gold resource of 1.2 Moz Measured, 5.0 Moz indicated and 2.3 Moz inferred. |
The April 2013 Feasibility Study envisions average annual production of 326,000 of gold and 494,000 ounces of silver over the first 10 years. Cash costs average US$486 per ounce in this period, with mill head grades averaging 1.46 g/t.
New Gold Agrees to Acquire Rainy River Resources Growing Gold Reserves by Over 40 Percent per Share.
TORONTO, May 31, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE MKT:NGD) and Rainy River Resources Ltd. ("Rainy River") (TSX: RR) today jointly announce that they have entered into a definitive acquisition agreement (the "Agreement"), whereby New Gold will offer to acquire all of the outstanding common shares of Rainy River through a friendly take-over bid. Under the terms of the Agreement, New Gold will offer, at the election of each holder of Rainy River common shares, 0.5 of a common share of New Gold or $3.83 in cash, in each case subject to pro ration (the "Offer"). The Offer represents a premium of 42% over the closing price of the Rainy River shares on the Toronto Stock Exchange on May 30, 2013, the last day of trading prior to announcement of the Offer, and a 67% premium to Rainy River's 20-day volume weighted average trading price. The maximum number of New Gold shares to be issued will be approximately 25.8 million and the maximum cash consideration will be approximately $198 million. The Offer values the fully-diluted in-the-money share capital of Rainy River, net of Rainy River's current cash balance, at approximately $310 million.