/NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES/
LAKEWOOD, CO, Aug. 8 /CNW/ - Fronteer Development Group (TSX and AMEX -
FRG)("Fronteer") and NewWest Gold Corporation (TSX - NWG)("NewWest") announced
today that the British Columbia Supreme Court has issued an interim order
providing for the holding of a special meeting of NewWest shareholders and
optionholders to consider the previously announced arrangement with Fronteer.
A special meeting of NewWest's shareholders and optionholders will be
held on September 13, 2007 at 10:00am in Toronto, Canada. The record date for
the special meeting is August 7, 2007. A management proxy circular and
accompanying materials are expected to be mailed to shareholders and
optionholders of NewWest on August 10, 2007.
If approved by shareholders and optionholders of NewWest (voting together
as a single class), and subject to final court approval and satisfaction of
conditions to closing, Fronteer would acquire 100% of the outstanding common
shares of NewWest in exchange for 0.26 of a Fronteer common share for each
NewWest share acquired.
NWG Investments Inc. the owner of approximately 86% of the outstanding
common shares of NewWest, has agreed to vote in favour of the arrangement.
Fronteer is an exploration and development company with a track record of
making discoveries. Not including the results of the above transaction,
Fronteer will have exposure to approximately C$42 million in
exploration/development expenditures and 100,000 metres of drilling throughout
2007. Fronteer has approximately $102 million in cash, no debt, and holds a
46.8% interest in Aurora Energy Resources (AXU - TSX), a leading Canadian
uranium company with a market valuation approaching $1.0 billion.
NewWest is one of the largest holders of precious metals mineral rights
in Nevada's gold trends, spanning approximately 623,000 acres. NewWest holds
19 exploration projects, including advanced-stage projects with measured and
indicated resources. NewWest's goal is to move its projects into production.
This news release includes certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities laws. Forward-looking statements involve risks, uncertainties and
other factors that could cause actual results, performance, prospects and
opportunities to differ materially from those expressed in such
forward-looking information. Forward-looking information in this news release
includes but is not limited to, completion of the arrangement, exposure to
exploration expenditures and metres drilled, and future plans and objectives
of NewWest Gold Corporation and Fronteer Development Group Inc., including
future exploration and development.
Any number of important factors could cause actual results to differ
materially from these forward-looking statements, including, among others,
risks related to international operations, the businesses of Fronteer and
NewWest not being successfully integrated or such integration proving more
difficult, time consuming or costly than expected, not realizing on potential
benefits of the combination, the actual results of current exploration
activities, conclusions of economic evaluations and changes in project
parameters as plans continue to be refined as well as future prices of gold
and silver, as well as those factors set out in the each company's Annual
Information Form as of December 31, 2006. Although each company believes that
the assumptions and factors used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed timeframes or at all.
Accordingly, readers should not place undue reliance on forward-looking
statements. Both companies disclaim any intention or obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.
For further information:
For further information: on Fronteer: visit www.fronteergroup.com or
contact: Camon Mak, Investor Relations, Glen Edwards, Media Relations, PH)
(604) 632-4677 or Toll Free 1-877-632-4677, firstname.lastname@example.org; on
NewWest: visit www.newwestgold.com or contact: NewWest Gold Corporation,
Stephen Alfers, President and Chief Executive Officer, PH) (303) 425-7042