New Gold Inc. (NGD)

[bird_splitter]

NEWS....Could be huge news!

7:30AM Goldcorp announces agreement with New Gold Inc. to aqcuire Xstrata's 70% Interest in the El Morro Project (GG) 41.96 : Co announced the execution of a binding agreement with New Gold, whereby New Gold will exercise its right of first refusal and acquire the 70% interest in the El Morro project held by Xstrata Copper Chile, a wholly owned subsidiary of Xstrata Plc. Goldcorp will advance $463 million to New Gold to fund the exercise of the right of first refusal by a New Gold subsidiary. Following the acquisition of the 70% interest by the New Gold subsidiary, Goldcorp will acquire that subsidiary from New Gold. Goldcorp will pay New Gold $50,000,000 in cash upon closing of the subsidiary acquisition, and has agreed to amend certain terms of the El Morro Shareholders Agreement, including with respect to New Gold's capital funding obligations.