New Gold Inc. has agreed to purchase nearly 155 million shares of Harte Gold Corp. at a price of $0.16 per share for total consideration of approximately $24.8 million. New Gold will have a 14.9% strategic interest in Harte Gold’s pro forma issued and outstanding common shares. Closing of the transaction was expected to occur on or about March 24.

In connection with the closing of the transaction, New Gold and Harte Gold will enter into an investor rights agreement where as long as New Gold holds not less than 10% of the issued and outstanding common shares of Harte Gold, have the right to participate in certain equity financings by Harte Gold in order to maintain its 14.9% interest in Harte Gold; and nominate one person to the board of directors of Harte Gold.

New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The company also holds an 8% gold stream on the Artemis Gold Blackwater project located in British Columbia and a 6% equity stake in Artemis. The company also operates the Cerro San Pedro Mine in Mexico (in reclamation).