There has been no announcement from Walt Disney World that this ride is closing to begin with. This is only a rumor, as is the rumor of a dwarf mine ride. The only things we can say for sure is that there will be a new Ariel ride, two Beauty and the Beast themed dining areas, and the double Dumbo. All other changes are still up in the air.
However, if Disney did decide to close this ride, I would think it is unwise to close a perfectly good ride while the Fantasyland Expansion is continuing. If they do close it, they should do so after they have opened the new areas.