Friday, May 31, 2013

Rainy River Resources Ltd. - RR.t

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.

On May 31, 2013 the company released NEWS

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.