Richfield Ventures acquired by New Gold for $550 Million  

news & knowledge 

May 17, 2011

News
As gold prices continue to rise and the sector experiences more and more merger activity, McMillan represents Richfield in a $550 million acquisition by New Gold.

On April 3, 2011, Richfield Ventures Corp. and New Gold Inc. entered into an arrangement agreement pursuant to which New Gold will acquire, through a plan of arrangement, all of the outstanding common shares and options of Richfield. Under the terms of the arrangement, each Richfield share will be exchanged for 0.9217 of a New Gold share plus nominal cash consideration. The exchange ratio implied a value of $10.38 per Richfield share or approximately $550 million on a fully diluted basis, representing a 31% premium to Richfield's April 1, 2011 closing price. 

Richfield was represented in the transaction by McMillan LLP, with a team consisting of Gary Floyd, Leo Raffin, Amandeep Sandhu and Lisa Fang (corporate and securities), Peter Botz (tax) and Herbert Ono (U.S. securities).