TORONTO, Dec. 29, 2014 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) and (NYSE MKT:NGD) is pleased to announce that the shareholders of Bayfield Ventures Corp. ("Bayfield") have voted overwhelmingly in favour of the proposed plan of arrangement with New Gold (the "Arrangement"). Under the terms of the Arrangement, Bayfield shareholders will receive 0.0477 of a New Gold common share for each Bayfield common share held.

Upon closing of the Arrangement, New Gold will acquire all of Bayfield's assets which include a 100% interest in three mineral properties, totalling 10 square kilometres, located adjacent to New Gold's Rainy River project in northwestern Ontario. One of the three properties, the Burns Block, lies between the eastern edge of the planned open pit and the underground Intrepid zone at Rainy River, and contains National Instrument 43-101 compliant gold and silver mineral resources.

Bayfield has applied to the Supreme Court of British Columbia to obtain the final court order approving the Arrangement and the hearing is expected to take place on December 30, 2014. Assuming court approval is obtained and that all other conditions of the Arrangement are satisfied or waived, the Arrangement is expected to become effective on or around January 1, 2015.

Bayfield shareholders and other interested parties can find additional materials relating to the Arrangement under Bayfield's SEDAR profile at www.sedar.com.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico, provide the company with its current production base. In addition, New Gold owns 100% of the Blackwater and Rainy River projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold's objective is to be the leading intermediate gold producer, focused on the environment and social responsibility. For further information on the company, please visit www.newgold.com.

This news release does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Bayfield or an offer to sell or exchange or the solicitation of an offer to buy or exchange any securities of New Gold, nor shall there be any sale or exchange of securities in any jurisdiction in which such offer, solicitation or sale or exchange would be unlawful prior to the registration or qualification under the laws of such jurisdiction. The distribution of this news release may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions.

- See more at: http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2014/Bayfield-Ventures-Shareholders-Approve-Plan-of-Arrangement-with-New-Gold/default.aspx#sthash.iAMezvcY.dpuf