Under the terms of the agreement, Silver Quest shareholders will receive 0.09 of a New Gold sharefor each Silver Quest share held and one common share in a new precious metals firm, McIntyre Minerals for every three Silver Quest shares held.
On completion of the transaction, New Gold will acquire Silver Quest’s 25% interest in the Davidson property, which forms the northern half of the Blackwater project.
Silver Quest’s share of the Blackwater mineral resource includes 0.56 million ounces of indicated and 0.21 million ounces of inferred gold mineral resources.
New Gold will also acquire a 100% interest in the Capoose property which covers over 41,000 hectares of land, with an established gold and silver indicated and inferred mineral resource.
