New Gold Announces Closing of Sale of Amapari Mine

New Gold Announces Closing of Sale of Amapari Mine

(All figures are in US dollars unless otherwise stated)

VANCOUVER, April 13 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX: NGD) today announces the closing of the previously disclosed sale of its Brazilian subsidiary Mineracao Pedra Branca do Amapari Ltda. ("MPBA"), which holds the Amapari mine and related assets, to Beadell Resources Limited ("Beadell"). New Gold received $37 million in cash and $16 million in Beadell shares for total consideration of $53 million from the sale of MPBA, resulting in New Gold holding approximately 19.5% of Beadell's shares outstanding.


"We are pleased to have completed the sale of Amapari as it represents another significant step in the surfacing of value from what we believed were previously underappreciated assets in our portfolio," stated Randall Oliphant, Executive Chairman. "This further solidifies our financial position and streamlines our asset base such that we can look to further build from this strong foundation."


With the completion of the transaction, New Gold has successfully monetized a non-core asset, further enhancing the company's financial resources while retaining participation in the upside of Beadell and its collection of assets. Beadell is an Australian listed gold-focused company with exploration and development assets in Western Australia and Brazil.

About New Gold


New Gold is an intermediate gold mining company with the Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and the Peak Gold Mines in Australia. The company is expected to produce between 330,000 and 360,000 ounces of gold in 2010, growing to over 400,000 ounces in 2012. In addition, New Gold has a strong portfolio of development and exploration assets in North and South America. For further information on the company, please visit www.newgold.com.

Pescod Talks about...EAS-T

EAST ASIA MINERALS

(EAS)

$7.56

+1.26

We did say we loved you right Dave Coffin...in a manly, non-

weird way! We have been writing up East Asia consistently over

the last 6 months and there is little doubt now that it is becoming

the play of the day.

Today East Asia announced more drilling results from the most

northerly test of the Miwah Zone, according to the ‘Hardrock Ana-

lyst’ indicating that at least on this section the zone is actually

strengthening.

The big news though, is from drill hole EMD024,which cut 111

metres of 3.96 g/t gold, which included 22 metres of 15.74 g/t gold

at the bottom of the hole.

When we talked to Coffin today he suggested that there is the

chance that this could be a feeder zone but on the other hand the

22 metres of 15.7 grams came at the bottom of the hole, when they

get a bigger rig in there who knows. Maybe this could have all

sorts of additional depth to it! Hey folks, imagine if this hole has

another 20, 50 or 100 metres to it...and heaven forbid if it got

richer, this is the kind of stuff that dreaming about exploration

conjures up.

Coffin points out that “The next few holes will determine how

solid the upside is”. And in writing in the ‘Hardrock Analyst today

they add “This news is taking the stock to new levels and again

making it a traders’ darling and cleaning up the EAS market at its

higher level”.

In the ‘Hardrock Analyst’ they write “Hang onto your hats”.

Well that has been an understatement and to think that the Coffins

have been writing up this story since about $0.50. Much thanks to

them we have been writing it up since around $1.75, but either way

it’s obviously becoming one of the stories of the day and those

two extra drill holes when they do come out in a few weeks will

add even more excitement. Or not!

Coffin also adds to us today, anybody such as another mining

company that was looking at this company before as far as poten-

tial now is going to have to look ever that much harder and ever

that much quicker.

Another important fact, Coffin suggests, is that people are now

feeling much better about Indonesia, more comfortable with the

country.

When we ask Dave Coffin our favorite question, if you had to

buy a stock right now what would it be...he answers, “I’m relatively

happy with some of the ones I’ve got”. One would think so.

EAST ASIA MINERALS (EAS) $7.56 +1.26

Mining analyst Wendell Zerb jokes “I thought that

$7.50 target would be good for a couple of weeks!”,

and he is referring to East Asia, one of the stories he

follows here at Canaccord.

He mentions that he thought that hole 24 could be

good, but it was better than good (once again folks,

the fact that it ended in the sweetest stuff makes eve-

ryone wonder how deep it could go and how much

better it might get). Zerb however, tends to be one of

the more cautious analysts in a pretty high-risk busi-

ness and he points out that ten million ounce depos-

its of this style, as East Asia’s do exist but there are

not a lot of them.

He also points out for those who want to be nerv-

ous about it, that fundamentally this story now has a

relatively big market capitalization. For sure Zerb

and others now will have to be back to the books

revising targets, expectations and the like and ever

more important will be those next two drilling results

on an ongoing story that is becoming one of the sto-

ries of the day.

Back to Zerb and our favorite question, if you could only

buy one today what would it be?...He sticks with Minera An-

des which he calls “a good slow bet”, it has a “few warts he

suggests but it’s pretty cute underneath”, referring to some

of the legal concerns surrounding the stock.

It was nice, he suggests, to see some decent volume to-

day to help Minera Andes break through the dollar barrier

and yes, he points out, that their Los Azueles in Argentina

should be moving past the billion ton level on their copper

deposit.

STERLING RESOURCES

(SLG)

$2.58 +0.18

BANKERS PETROLEUM

(BNK)

$9.18 +0.10

ENTERRA ENERGY

(ENT.UN) $2.85 +0.07

We mention a lot of high risk/high reward plays here

from time to time, and we probably don’t mention enough,

that some of them, like a Cygam is going to drill offshore

Italy, and if it hits could be many times current levels and

if it misses...or a CGX later this year will be drilling in Guy-

ana and if it hits could be multiples of current prices but if

it misses could be fractions of its current price.

There are those high risk/high reward plays out there,

usually our favorites are a little bit different.

When we went to Albania and saw Bankers Petroleum,

one look at that valley told us that they had a resource

there that was just enormous. We wrote it up the first half

of this year, time after time after time.

For much of the last 4 or 5 months, Sterling has been

our favorite story because it is protected with production

18-24 months down the road that should throw out cash-

flow of $1 a share plus, in the meantime starting in about

23 days they spud 5 or 6 different plays, all of which have

varying risk and varying reward potential. As most ana-

lysts tell us off record, Sterling could be anywhere be-

tween $3 and $10 by year end depending on results from

their different plays.

A combination of protection from cash flow down the

road plus a series of plays attracted our sense of greed.

Over the next few months though don’t be surprised if

suddenly we start mentioning Enterra Resources. We will

be writing it up a lot in the coming months.