GOLD PLAYS IN CHILE

According to Yahoo’s In Play, January 7, 2010, New Gold (NGD) announced that it will enter into a partnership with Goldcorp Inc. (GG), and exercise the right of first refusal to acquire 70% of the El Morro copper-gold project in Chile for $463 million. NGD provided notice to Xstrata Copper Chile, a subsidiary of Xstrata (XSRAF.PK), of the exercise of its right of first refusal. New Gold is currently a 30% joint venture partner in El Morro with Xstrata. Goldcorp will loan $463 M to New Gold to fund acquisition. Once New Gold has acquired the 70% interest through a subsidiary, it will sell that subsidiary to Goldcorp. At the same Goldcorp will pay $50 to New Gold and the parties will amend the terms of the existing El Morro Shareholders Agreement to further increase the value of New Gold's 30% interest in the El Morro project.