SACRAMENTO, Calif., July 7, 2005 (PRIMEZONE) -- Newgold, Inc. (OTCBB:NGLD) announced today that four prominent businessmen have accepted appointments to Newgold's Board of Directors. The appointments are expected to become effective within the next 30 days. They are as follows:
-- John W. W. Hick -- Mr. Hick is currently Chief Executive Officer
of Rio Narcea Gold Mines, Ltd., a TSX and AMEX listed Canadian
mining company with operations and exploration and development
projects in Spain, Portugal and Mauritania. He has over 20
years experience in the gold mining sector, having previously
held senior management positions for such companies as Placer
Dome, Inc., Raycock Yellowknife Mines Ltd (purchased by Glamis
Gold Ltd.) and Defiance Mining Corp. (purchased by Rio Narcea).
Mr. Hick's extensive background in the mining sector brings
valued experience to the Newgold Board.
-- John W. Sabine -- Mr. Sabine is currently a partner in the
Toronto office of the law firm Fraser Milner Casgrain LLP. He
is a director of Anvil Mining Limited, which is listed on the
TSX and AMEX, a copper mining company with operation in Africa
and formerly served on the boards of Discovery West Corp.,
Minera Rayrock Inc., Golden Star Resources Inc. and several
other Canadian public companies. Mr. Sabine's experience with
mining companies and his knowledge in corporate law and
governance will be a significant asset for the Newgold Board.
-- Mark J. Polubiec -- Mr. Polubiec is currently Chairman of Corinth
Capital Partners Inc., a Toronto based transaction oriented
financial services firm focusing on merchant banking, and merger
and acquisition consulting. His 25 year career has included
long terms with Burns Fry Limited (now Nesbitt Burns Inc.) where
he headed investment banking activities in the United States and
mergers and acquisition activities globally and Canaccord
Capital Corporation where he was the partner in charge of
investment banking, institutional sales, trading and research
for the firm as well as all other operations in Eastern Canada.
Mr. Polubiec brings extensive experience in public transactions,
large and small, entrepreneurial and structured to the Newgold
Board.
-- Stephen C. Akerfeldt -- Mr. Akerfeldt is currently Chairman of
the Board of Proprietary Industries Inc. (TSX:PPI), a
principal merchant bank involved in a wide range of investments
and businesses. He is also currently a consultant to a number
of independent entrepreneurs. Included in his prior experience
are 22 years with of Coopers & Lybrand in the Toronto office
where he was an audit partner as well as significant acquisition
and operational activities in both retail (acquisition and growth
of Cadet Cleaners) and manufacturing (Vice Chairman and CFO of
Magna International Inc.) businesses. Mr. Akerfeldt's financial
expertise will be of great benefit to the Newgold Board.
Continuing on Newgold's Board of Directors will be its current Chairman and Chief Executive Officer, A. Scott Dockter and James W. Kluber, its current Chief Financial Officer and Secretary.
Newgold's business is to acquire, explore and, if warranted, develop various mining properties located in North America. It currently owns the Relief Canyon mine project in Nevada, consisting of 21 lode claims and 57 mill site claims with mining infrastructure currently on maintenance status. Additionally, the Company has under letter of intent to acquire two leasehold interests; the first is known as the Red Caps project and consists of approximately 23 unpatented mining claims while the second leasehold interest, known as the BXA project, consists of approximately 77 unpatented mining claims. Located on the Battle Mountain-Eureka mineral belt and the Cortez trend, these mineral trends are parallel to the Carlin Trend about 50 kilometers to the east. The Red Cap project is located close to Placer Dome Inc.'s (NYSE) Cortez mine complex gold mine holdings which are currently in production. The Company plans to carryout comprehensive exploration and development programs on its properties. While the Company may fund and conduct these activities itself, the Company's current plan is to outsource most of these activities through the use of various joint venture, royalty or partnership arrangements pursuant to which other companies would agree to finance and carryout the exploration and development programs on the Company's mining properties. Consequently, the Company's current plan will not require the hiring of significant numbers of mining employees but will require a smaller group of employees to monitor and/or supervise the mining and exploration activities of other entities in exchange for royalties or other revenue sharing arrangements.
Safe Harbor Statement
The matters discussed in this release contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, that involve risks and uncertainties. Although Newgold believes that the expectations reflected in such forward-looking statements are reasonable, the forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Newgold cautions investors that any forward-looking statements made by Newgold are not guarantees of future performance and that actual results may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those reflected in forward-looking statements include, but are not limited to, risks and uncertainties regarding the actual mineralization of Newgold's mining properties, the unproven nature of and potential changes to Newgold's business model, the risk that the capital and other resources that Newgold will need to exploit its business model will not be available, and the risks discussed in Newgold's Form 10-KSB and in Newgold's 10-QSB's and in Newgold's other filings with the Securities and Exchange Commission.