New Gold Inc. has a friendly deal to acquire Richfield Ventures Corp. and its Blackwater gold project for about $550-million worth of shares, a 31 per cent premium to Friday closing prices.
Vancouver-based New Gold will issue 0.9217 of a share, worth about $10.38 as of Friday, for each share of Richfield, based in Quesnel, B.C.
Upon closing, Richfield will own about 10 per cent of New Gold's equity.
New Gold says the Blackwater project is a good fit with its own New Afton project, which is well-advanced towards production.
The Blackwater project, 160 kilometres southwest of Prince George, B.C., is projected to contain 1.8 million ounces of gold.
The arrangement has been unanimously approved by the two boards.