New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) today reports that it has closed the previously announced sale of the Blackwater Project (the “Transaction”) to Artemis Gold Inc. (“Artemis”) for consideration comprised of:
- Total cash consideration of $190 million comprised of an initial cash payment of $140 million and $50 million in cash payable on August 21, 2021;
- A gold stream on 8% of gold produced from the Blackwater Project, reducing to 4% of gold production once approximately 280,000 ounces of gold have been delivered to New Gold. The stream is subject to a transfer price equal to 35% of the spot gold price;
- 7,407,407 Artemis common shares having a current aggregate value of $34.4 million based on the closing price of the Artemis common shares on the TSX Venture Exchange on August 21, 2020.
“The divestment of the Blackwater Project completes another key transaction for New Gold that allows us to retain exposure to Blackwater through the gold stream and our equity position in Artemis. We believe that Artemis is the best positioned team to advance the project for the benefit of all stakeholders, including the host communities and partners. We look forward to participating in the future success of Blackwater and wish the team well.” stated Renaud Adams, CEO. “This transaction, along with the US$300 million partnership with Ontario Teachers’ Pension Plan as well as the recent restructuring of our balance sheet through the US$400 million bond offering that funded the redemption of the 2022 senior notes provides us with additional liquidity and financial flexibility as we transition to the next phase of our growth plan.”
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company with a portfolio of two core producing assets in Canada, the Rainy River and New Afton Mines. The Company also holds an 8% gold stream on the Artemis Gold Blackwater project located in British Columbia and a 6% equity stake in Artemis. The Company also operates the Cerro San Pedro Mine in Mexico (in reclamation). New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility.