New Gold buys remaining stake in New Afton mine for $300M

Canada’s New Gold (TSX: NGD) (NYSE American: NGD) has agreed to acquire the remaining 19.9% free cash flow interest in the New Afton copper-gold mine from the Ontario Teachers’ Pension Plan for $300 million.The deal consolidates New Gold’s ownership of New Afton, located 10km west of Kamloops, British Columbia.“This transaction allows New Gold to fully consolidate the free cash flow exposure to one of Canada’s highest quality gold/copper assets which we already own and operate,” president and chief executive officer Patrick Godin said.To finance the deal, New Gold plans to use nearly $100 million from a gold prepayment arrangement. Under this structure, the company will receive cash upfront in exchange for delivering a fixed number of gold ounces over 12 months. Based on current pricing, the committed ounces represent about 8% of New Gold’s expected consolidated gold production during that period.The Toronto-based miner recently extended New Afton’s mine life life through technical growth projects developed over the past few years. In February, the company reported a 15% increase in copper reserves and a 13% increase in gold reserves compared to year-end 2024. The additional reserves, which came at no extra cost, are expected to support an extension of the mine’s life to 2031.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com