New Gold has started formal proceedings in its take-over bid of Rainy River Resources and its signature gold project north of Barwick.
The Vancouver-based mining company is offering $3.83 cents a share for Rainy River with the deal valued at about $310-million in total.
Rainy River shareholders can also opt to take a half a share in New Gold for each share they now own.
Rainy River's board of directors has already supported the offer which closes July 24.