Shareholders/B.C Court approve New Gold/Coeur Mining deal

The Supreme Court of British Columbia has signed off on a deal that will see New Gold acquired by U.S.-based Coeur Mining.

It is one of several steps that were necessary for the two mining companies to conclude a $7 billion agreement that was first announced last November.

The court ruling came just days after New Gold shareholders at a special meeting voted more than 99% in favour of the deal.

The company’s Board of Directors had recommended acceptance.

In a statement issued in December, Chair Richard O’Brien said it would create a unique, one-of-a-kind North American precious metals mining company.

“The Transaction will crystallize the value created for our New Gold shareholders over the past few years and unlock the next level of potential, with exploration upside from both New Afton and Rainy River,” stated O’Brien in a release.

“At the same time, the combined company will diversify our asset base by adding five high-quality precious metals operations with significant upside, a strengthened balance sheet, and is expected to generate significant free cash flow and higher levels of shareholder returns.”

Shareholders with Coeur Mining voted at a separate meeting 97% in support of New Gold shareholders receiving company stock, one of the deal’s components.

The two mining companies expect to conclude the transaction by this June.

It is still subject to other necessary approvals under the Investment Canada Act and other conditions being met.