Peak, Metallica, New Gold Plan $1.6 Billion Merger |
| Bloomberg - Apr 1, 2008 |
Peak Gold Inc., owner of the Amapari mine in Brazil, agreed to a $1.6 billion all-stock combination with Metallica Resources Inc. and New Gold Inc. to diversify and increase production.
The combined company, to be called New Gold Inc., is expected to produce 297,000 ounces of gold this year and 335,000 ounces in 2009 from operations in Australia, Brazil and Mexico, Vancouver-based Peak said today in a statement. Output could top 500,000 ounces from the current portfolio beyond 2010, Peak Chief Executive Officer Robert Gallagher said in an interview.
``This merger increases our exposure to the current commodity price cycle and adds significantly to Peak Gold's long- term production profile,'' said Gallagher, who will be CEO of the combined company.
Read Full Article from Bloomberg
- Posted: 2008-04-01 08:42:53
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