New Gold Completes US$1.6 Billion Business Combination with Metallica Resources and Peak Gold



    VANCOUVER, June 30 /CNW/ - New Gold Inc. ("New Gold") (TSX and AMEX -
NGD) is pleased to announce that it has completed the previously announced
business combination with Peak Gold Ltd. ("Peak Gold") and Metallica Resources
Inc. ("Metallica").
    "Tremendous work has gone into completing the business combination
between New Gold, Peak Gold and Metallica over the past three months. On
behalf of the Board of Directors and Management, I would like to thank all of
those involved for their hard work and dedication. I would also like to extend
a special thank you to both Richard Hall and Clifford Davis for their
leadership over the years at Metallica and New Gold respectively", said Robert
Gallagher, President and Chief Executive Officer.
    "Management is excited at the prospects for this new intermediate gold
mining company and is looking forward to creating further value for
shareholders by focussing on three strategies; routine delivery on our
operational targets; execution of our internal growth projects which are the
development of New Afton mine and the analysis of processing alternatives at
Amapari; and thirdly; continued external growth through consolidation of
operations in the junior mining sector" concluded Mr. Gallagher.

    Share and Warrant Information
    -----------------------------
    New Gold shares were issued under the plan of arrangement with Peak Gold
and will replace outstanding Peak Gold shares on the basis of 0.1 of a
New Gold share plus $0.0001 in cash for each Peak Gold share. Under the plan
of arrangement with Peak Gold, the two series of listed Peak Gold warrants
entitle the holders to New Gold common shares on the basis of 0.1 of a New
Gold share plus $0.0001 in cash for each such warrant exercised. Peak
Warrantholders are not required to surrender their current Peak Gold warrant
certificates. It is anticipated that Peak Gold shares and warrants will be
delisted from the TSXV at the close of trading on July 4, 2008.
    New Gold shares were issued under the plan of arrangement with Metallica
and will replace outstanding Metallica shares on the basis of 0.9 of a
New Gold share plus $0.0001 in cash for each Metallica share. Under the plan
of arrangement with Metallica, the one series of listed Metallica warrants
entitle the holders to New Gold common shares on the basis of 0.9 of a
New Gold share plus $0.0001 in cash for each such warrant exercised. Metallica
Warrantholders are not required to surrender their current Metallica warrant
certificates. It is anticipated that Metallica shares will be delisted from
the TSX and the AMEX at the close of trading on July 4, 2008.
    It is expected that the common shares of both Peak Gold and Metallica
will begin trading as New Gold (TSX and AMEX:   NGD) at market open on July 7,
2008. In addition, it is expected that the warrants of both Peak Gold and
Metallica will begin trading as New Gold on the TSX at market open on July 7,
2008. The New Gold warrant trading symbols and terms are summarized as
follows:

    
    Former Symbols/                        New Symbols/
    Cusip No.        Former Terms          Cusip No.     New Terms
    ---------------  ------------          ------------  ---------

    NGD.WT           1 warrant + $15.00    NGD.WT.A      Same as former terms
    Cusip No.        equals 1 common       Cusip No.
    644535122        share expiry          644535122
                     June 28, 2017

    PIK.WT           Ex.: 1000 warrants    NGD.WT.B      Ex: 100 warrants +
    Cusip No.        + $1.50 equals 1000   Cusip No.     $15.00 equals 100
    70468J140        common shares;        644535130     common shares plus
                     expiry April 3, 2012                $0.001 per common
                                                         share; expiry
                                                         April 3, 2012

    PIK.WT.A         Ex.: 1000 warrants    NGD.WT.C      Ex.: 100 warrants +
    Cusip No.        + $0.90 equals 1000   Cusip No.     $9.00 equals 100
    70468J130        common shares expiry  644535148     common shares plus
                     November 28, 2012                   $0.001 per common
                                                         share; expiry
                                                         November 28, 2012

    MR.WT            Ex.: 1000 warrants +  NGD.WT.D      Ex.: 900 warrants +
    Cusip No.        $3.10 equals 1000     Cusip No.     $3.44 equals 900
    59125J120        common shares expiry  644535155     common shares plus
                     December 11, 2008                   $0.0001 per common
                                                         share expiry
                                                         December 11, 2008
    

    New Gold is a new intermediate gold mining company with three operating
assets in Mexico, Brazil and Australia and two development projects in Canada
and Chile. For further information on New Gold, please visit our new website
at www.newgold.com.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    Certain information contained in the press release, including any
information as to New Gold's future financial or operating performance, may be
deemed "forward looking". All statements in this press release, other than
statements of historical fact, that address events or developments that
New Gold expects to occur, are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "express", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" "budget" and
similar expressions, or that events or conditions "will", "would", "may",
"could", or "should" occur. All such forward-looking statements are subject to
important risk factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Forward-looking statements are necessarily
based on estimates and assumptions that are inherently subject to known and
unknown risks, uncertainties and other factors that may cause New Gold's
actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking
statements. Such factors include, without limitation: anticipated synergies
from the business combination may not be realized, there may be difficulties
in integrating the operations and personnel of New Gold, Peak Gold and
Metallica, the combined company will be subject to significant capital
requirements associated with its expanded operations and portfolio of
development projects, fluctuations in the international currency markets and
in the rates of exchange of the currencies of Canada, the United States of
America, Australia, Mexico and Chile; price volatility in the spot and forward
markets for commodities; impact of any hedging activities, including margin
limits and margin calls; discrepancies between actual and estimated
production, between actual and estimated reserves and resources and between
actual and estimated metallurgical recoveries; changes in national and local
government legislation in Canada, the United States, Mexico, Chile and
Australia or any other country in which the combined company currently or may
in the future carry on business taxation, controls, regulations and political
or economic developments in the countries in which the combined company does
or may carry on business; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses and permits;
diminishing quantities or grades of reserves; competition; loss of key
employees; additional funding requirements; actual results of current
exploration or reclamation activities; changes in project parameters as plans
continue to be refined accidents; labour disputes; defective title to mineral
claims or property or contests over claims to mineral properties. In addition,
there are risks and hazards associated with the business of mineral
exploration, development and mining, including environmental hazards,
industrial accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion losses (and the risk of inadequate insurance or
inability to obtain insurance, to cover these risks). Forward-looking
statements are not guarantees of future performance, and actual results and
future events could materially differ from those anticipated in such
statements. All of the forward-looking statements contained in this press
release are qualified by these cautionary statements. New Gold expressly
disclaims any intent or obligation to update or revise any forward-looking
statements, whether as a result of new information, events or otherwise,
except in accordance with applicable securities laws.





For further information:

For further information: Mélanie Hennessey, Vice President Investor
Relations, New Gold Inc., Direct: (604) 639-0022, Toll-free: 1-888-315-9715,
Email: info@newgold.com, Website: www.newgold.com


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