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Fronteer Development Group Inc. and NewWest Gold Corporation Enter into Arrangement Agreement
Fronteer Development Group Inc. and NewWest Gold Corporation Enter into Arrangement Agreement.
About this update from Cullinan Metals Corp
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE\n\n\nUNITED STATES/\n\n\nLAKEWOOD, CO, July 27 /CNW/ - Fronteer Development Group (TSX and AMEX -\nFRG)("Fronteer") and NewWest Gold Corporation (TSX - NWG)("NewWest") announced\ntoday that NewWest and Fronteer have entered into an arrangement agreement\npursuant to which Fronteer will acquire 100% of the common shares of NewWest\nthrough a court-approved plan of arrangement (the "Arrangement"). NWG\nInvestments Inc. (the "Significant Shareholder"), the owner of approximately\n86% of the outstanding common shares of NewWest, has agreed to vote in favour\nof the Arrangement. The agreement today comes at the end of 30-day exclusivity\nand due diligence period that was previously announced by the parties on June\n28, 2007.\n\n\n"This transaction with Fronteer represents a significant premium for our\nshareholders and increase in shareholder value. NewWest shareholders will have\nan opportunity, through their ownership in Fronteer, to continue to\nparticipate in the upside of NewWest's projects while increasing the\ngeographic diversity with respect to the assets of the combined company. The\nNewWest gold assets will add to the already impressive portfolio of assets of\nFronteer, creating a formidable platform for continued growth," said Stephen\nAlfers, President and Chief Executive Officer of NewWest.\n\n\nMark O'Dea, President and Chief Executive Officer of Fronteer commented,\n"This transaction is an excellent fit for Fronteer, bringing in a pipeline of\n19 new projects in one of the world's best gold mining districts. The\ncombination of NewWest's exciting Nevada projects with our growing Turkish\nassets creates an outstanding gold platform on which to continue building a\nsignificant mining company".\n\n\nThe Board of Directors of NewWest has unanimously recommended that\nNewWest shareholders and optionholders vote in favour of the Arrangement. The\nNewWest Board has also received an opinion from its financial advisor, GMP\nSecurities L.P., that the consideration to be received by minority NewWest\nshareholders under the Arrangement is fair from a financial point of view.\n\n\nIt is expected that the management information circular for a special\nmeeting of NewWest shareholders and option...