New Gold Inc TSX:NGD plans friendly takeovers of Silver Quest Resources Ltd TSXV:SQI and Geo Minerals Ltd TSXV:GM. The acquisitions will give New Gold a 100% interest in the Blackwater Gold-Silver Project in central BC and an adjacent 42,470 hectares of property, as well as other properties.
For each Silver Quest share, shareholders will receive 0.09 of a New Gold share and one share in a new spinout company, McIntyre Minerals Inc. For each Geo Minerals share, shareholders will receive $0.16 and one-fifteenth of a share in a new, unnamed spinout company.
The Silver Quest acquisition raises New Gold’s interest in Blackwater’s northern claims from 75% to 100%, giving New Gold a 100% interest in the entire project. The acquisition also gives New Gold the 41,000-hectare Capoose Property, 25 kilometres from Blackwater. The Geo Minerals acquisition gives New Gold an additional 1,470 hectares adjacent to Blackwater.
New Gold’s share of the Blackwater resource currently comes to 4.8 million ounces gold and 25.5 million ounces silver measured and indicated, and 1 million ounces gold and 5 million ounces silver inferred. The Silver Quest share currently comes to 555,000 ounces gold and 2.56 million ounces silver indicated and 206,000 ounces gold and 2.62 million ounces silver inferred.
Silver Quest’s Capoose Project has an indicated resource of 383,823 ounces gold, 26.59 million ounces silver and 137.47 million pounds zinc and an inferred resource of 443,206 ounces gold, 29.52 million ounces silver and 219.21 million pounds zinc.
Geo Minerals’ 2011 exploration program for its West Blackwater Property includes geological mapping, prospecting, IP and soil sampling, with a 5,000-metre drill campaign to follow.
by Greg Klein