Metallica Resources Inc. (MR.TO), New Gold Inc. (NGD) and Peak Gold Ltd. (PIK.V) Announce Proposed Merger
Today, in a new and somewhat shocking announcement, three solid players in the gold industry announced they have signed a letter of agreement to complete a business combination, creating a new globally diversified intermediate gold company. The combination of Metallica Resources Inc., New Gold Inc. and Peak Gold Ltd. will create a new company that retains the name, New Gold Inc., and has a market cap of approximately $1.6 billion. The newly formed company will assume ownership of three operating gold mines in Australia, Brazil and Mexico, in addition to developmental stage projects in Canada and Chile. Once the merger…