New Gold Inc. is pleased to announce that it has entered into an agreement relating to its strategic partnership with Ontario Teachers' Pension Plan at the New Afton Mine , whereby
New Gold will increase its effective free cash flow interest in New Afton to 80.1% . On closing of the Transaction, Ontario Teachers' free cash flow interest in New Afton will be reduced from 46.0% to 19.9% in exchange for an upfront cash payment of $255 million from
New Gold.
New Gold will fund the cash payment with cash on hand, borrowings from its existing revolving credit facility and net proceeds from a concurrent bought deal equity financing of common shares of
New Gold for approximately $150 million. Anticipated Benefits to [wp=145]New Gold[...