New Gold acquires remaining interest in New Afton mine for $300m

Canadian golden mining institution New Gold has signed an statement with Ontario Teachers' Pension Plan to get the remaining 19.9% escaped currency travel involvement successful the New Afton copper-gold excavation successful British Columbia, Canada, for a $300m (C$425.51m) currency outgo successful return.

The outgo volition beryllium financed done disposable cash, borrowings from an existing recognition installation and a golden prepayment financing arrangement.

Approximately $100m of the currency outgo volition beryllium funded done golden prepayment financing.

Under this arrangement, New Gold volition present a predetermined fig of golden ounces implicit a 12-month term, which represents astir 8% of the company's projected consolidated golden accumulation for that period.

This transaction volition effect successful New Gold afloat consolidating its escaped currency travel involvement successful the excavation to 100%.

Global capitalist Ontario Teachers’ formed a strategical concern with New Gold successful 2020, acquiring a 46% escaped currency travel involvement successful the New Afton excavation for $300m upfront.

In 2024, this involvement was reduced to 19.9% pursuing a $255m currency outgo from New Gold.

Additional presumption of the transaction see the termination of each existing agreements related to Ontario Teachers' involvement successful New Afton, specified arsenic the close to a $20m currency outgo connected a alteration of power of New Gold earlier 31 January 2026.

The transaction's closing, expected astatine the opening of May, is taxable to customary conditions and does not necessitate shareholder approval.

New Gold anticipates accrued upside imaginable from ongoing exploration activities astatine the New Afton mine, including a $17m concern successful 2025 focused connected the K-Zone.

New Gold president and CEO Patrick Godin said: "This is an fantabulous transaction allowing New Gold to afloat consolidate the escaped currency travel vulnerability to 1 of Canada's highest prime gold/copper assets, which we already ain and operate. This transaction allows america to turn successful an exceptional determination with nary diligence oregon integration risk, and with nary equity dilution to our shareholders.

"With the C-Zone ramp up progressing well, New Afton is connected the verge of exceptional accumulation maturation and outgo betterment that should pb to accrued escaped currency travel generation. Our extremity is to maximise this escaped currency travel procreation astatine the mine, portion continuing our exploration programme to widen excavation beingness and make further worth for our shareholders and stakeholders. We would besides similar to convey Ontario Teachers' for their enactment and concern implicit the past 5 years."

In August 2022, Foran Mining entered into a preliminary statement for a C$200m concern from the Ontario Teachers' Pension Plan Board successful the McIlvenna Bay task successful eastbound Saskatchewan, Canada.