New Gold Inc. (NGD)

[Tommy]

$NGD - New Gold Successfully Completes Acquisition of Rainy River

http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2013/New-Gold-Successfully-Completes-Acquisition-of-Rainy-River/default.aspx

VANCOUVER, Oct. 16, 2013 /CNW/ - New Gold Inc. ("New Gold") (TSX: NGD) (NYSE MKT:NGD) today announces that it has successfully completed its compulsory acquisition of the approximately 2.5% of the outstanding shares of Rainy River Resources Ltd. ("Rainy River") not previously acquired by New Gold. As of the close of business on October 15, 2013, New Gold became the registered owner of 100% of the outstanding shares of Rainy River.

Rainy River shareholders who disposed of their shares in the compulsory acquisition, and who elected, or were deemed to have elected, the cash option will receive $2.00 in cash and 0.239 New Gold shares for each Rainy River share. Those who elected the share option will receive 0.5 New Gold shares for each Rainy River share. New Gold will pay an aggregate of approximately $5.6 million and issue approximately 0.7 million` New Gold shares in connection with the compulsory acquisition.

Rainy River shareholders who have not delivered their share certificate(s) and properly completed letter of transmittal to Computershare Trust Company of Canada at the office specified in the Notice of Compulsory Acquisition dated August 12, 2013 must do so in order to receive the cash and New Gold shares to which they are entitled. Such Rainy River shareholders will be deemed to have elected the cash option. The Notice of Compulsory Acquisition and accompanying letter of transmittal is available under Rainy River's profile at www.sedar.com.

"We are pleased to have completed the acquisition of Rainy River and look forward to advancing it through the various stages of development," stated Randall Oliphant , Executive Chairman. "As we have managed to do through the development of Mesquite, Cerro San Pedro and, most recently, New Afton, we see scope to add significant value to this project as we continue to move it forward."

The company is in the process of completing its detailed review and update of the Rainy River feasibility study as well as advancing the permitting efforts for the project.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Cerro San Pedro Mine in Mexico, the Mesquite Mine in the United States and the Peak Mines in Australia provide the company with its current production base. In addition, New Gold owns 100% of the Blackwater and Rainy River projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold's objective is to continue to establish itself as a leading intermediate producer, focused on the environment and sustainability. For further information on the company, please visit www.newgold.com.
- See more at: http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2013/New-Gold-Successfully-Completes-Acquisition-of-Rainy-River/default.aspx#sthash.5PDvBLbL.dpuf