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Friday, 20th June 2008 (2365 views)

Metallica Resources, New Gold and Peak Gold have announced that they are to combine their businesses after a 99 per cent vote of approval from their shareholders.

The companies anticipate the deal to be finalised around June 30th 2008 following the attainment of court approval.

BIV explained that the new combined business is predicted "to produce approximately 297,000 ounces of gold in 2008 and 335,000 ounces in 2009 with estimated cash costs of about $240 (£121) per ounce".

Shareholders from Metallica Resources will own 45.7 per cent of the new company and Peak Gold's shareholders will have 37.8 per cent, according to the

It reported that the chief executive of Peak Gold, Robert Gallagher, will take the same position in the new gold mining company.

Metallica Resources is a Canadian company with projects in Mexico, Chile and America.

Peak Gold has gold properties in Australia and Brazil and New Gold's main project is in British Columbia.

 

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