This was a quick counteraction to the Aurizon acquisition falling through - and we like this asset better. We see no red flags with the deal, other than perhaps the market's interpretation of what New Gold paid for Rainy River. While the premium is higher than the industry norm, it's less then what they would've paid just a few months ago due to the market crash. The dilution is roughly 10%, which is not unreasonable given the amount of production they'll be adding, plus the fact that the project will almost certainly grow (notice that Resources are 50% bigger than the Reserves). While dilution is usually frowned upon by existing shareholders, which includes us in this case, we like what NGD is getting for it and thus view today's drop in share price as an opportunity. A CR comment from the other day