(All figures are in Canadian dollars unless otherwise indicated)
December 16, 2011 – New Gold Inc. (“New Gold”) (TSX:NGD) (AMEX:NGD) and Silver
Quest Resources Ltd. (“Silver Quest”) (TSX.V:SQI) are pleased to announce that at a special
meeting of Silver Quest shareholders held on Thursday, December 15, 2011 in Vancouver,
British Columbia (the “Meeting”), the Silver Quest shareholders voted overwhelmingly in
favour of a special resolution to approve the proposed plan of arrangement with New Gold
(the “Arrangement”).
Upon closing of the Arrangement, New Gold will acquire Silver Quest’s 25% interest in the
Davidson Property, which forms the northern half of the Blackwater Project and in which
New Gold currently holds the remaining 75% interest, as well as Silver Quest’s Capoose
Property.
As part of the Arrangement, Silver Quest’s remaining properties, including its 3Ts Gold
Project in central British Columbia, will be spun-out into Independence Gold Corp.
(“Independence”) and New Gold will purchase, on a private placement basis, $3.5 million of
Independence common shares, which will result in New Gold holding 9.9% of the
outstanding common shares of Independence.
At the Meeting, Silver Quest shareholders also voted to approve the stock option plan of
Independence. Additionally, the TSX Venture Exchange has advised that it has conditionally
approved the listing of Independence, subject to, amongst other things, review by the
exchange of final documentation.
For additional details of the Arrangement, please see Silver Quest’s management
information circular dated November 16, 2011 and New Gold and Silver Quest’s joint press
releases dated November 7, 2011 and October 17, 2011, all having been filed on New Gold
and Silver Quest’s respective profiles on SEDAR at www.sedar.com.
Silver Quest’s application to the Supreme Court of British Columbia to obtain the final court
order approving the Arrangement is expected to take place on Friday, December 16, 2011.
Assuming court approval is obtained and that all other conditions to the Arrangement are
satisfied or waived, the Arrangement is expected to become effective on or around
December 20, 2011.