New Gold consolidates 100% interest in New Afton Mine

New Gold (NGD) has entered into an agreement with Ontario Teachers’ Pension Plan to acquire the remaining 19.9% free cash flow interest in the Company’s New Afton Mine. Following the transaction, the Company will have fully consolidated its free cash flow interest in New Afton to 100%.On closing of the Transaction, Ontario Teachers’ free cash flow interest in New Afton will be fully eliminated in exchange for a cash payment of $300M from New Gold. New Gold plans to fund the cash payment with cash on hand, borrowings from its existing revolving credit facility and a gold prepayment financing. New Gold plans to fund a portion of the cash payment with approximately $100M from a gold prepayment financing. Under the Gold Prepayment, the Company would have the obligation to deliver a set number of gold ounces over a twelve-month term in exchange for $100M in cash up front. Based on current pricing, the total ounces expected to be delivered represents approximately 8% of the Company’s expected consolidated gold production in that period. At closing, the parties will terminate all existing agreements with respect to Ontario Teachers’ free cash flow interest in New Afton, including the previously disclosed Ontario Teachers’ right to a one-time cash payment of $20M on a change of control of New Gold if it is announced prior to January 31, 2026. Closing of the Transaction is subject to customary conditions and is expected to close at the beginning of May. The Transaction does not require shareholder approval.