Western Goldfields (WGW)

[Picassa]

8:01AM Western Goldfield and New Gold announce business combination (WGW) 1.48 : The cos announce that they have entered into a definitive agreement pursuant to which New Gold (NGD) will acquire by way of a plan of arrangement all of the outstanding common shares of Western Goldfields in exchange for one New Gold common share and CDN$0.0001 in cash for each common share of Western Goldfields. Upon completion of the Transaction, existing New Gold and Western Goldfields shareholders will own approximately 58% and 42% of the combined company, respectively... The parties expect to complete and mail the joint information circular in April 2009 and plan to hold the special meetings in May 2009. The Transaction is expected to close at the end of May 2009.