NEW YORK (TheStreet) -- Shares of New Gold Inc. (NGD) closed up 7.2% to $3.87 on very heavy trading volume after the Vancouver-based miner announced that it intends to acquire 100% of Bayfield Ventures Corp., a company engaged in the business of acquiring and exploring resource properties in Canada.
The offer values Bayfield at 21 cents per common share or approximately $16.6 million.
Bayfield's assets include a 100% interest in three mineral properties, totaling 10 square kilometres, located adjacent to New Gold's Rainy River project in northwestern Ontario.
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"The acquisition of Bayfield further consolidates our position in the Rainy River district," New Gold said, noting, "By adding these three properties within and adjacent to our project area, it simplifies our development plans, increases our gold and silver mineral resources and adds to our prospective land package."
Separately, TheStreet Ratings team rates NEW GOLD INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW GOLD INC (NGD) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."