New Gold Inc. announced that it 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%. Benefits to New Gold Shareholders: Fully consolidates free cash flow from one of Canada's most attractive mines - New Afton is entering into a period of expected significant free cash flow growth driven by increasing production and improved costs; Investment in an existing high-quality operation - New Gold has developed extensive block caving expertise and social partnerships in an exceptional location; Accretive and disciplined transaction - Fully consolidates ownership, gaining exposure to 100% of New Afton's life-of-mine cash flow with no equity dilution to New Gold's shareholders.
Increased upside exposure - New Gold's focus on near-mine exploration activities, highlighted by exceptional drill results released in September 2024, provides New Afton with the potential to add substantial value by improving the production profile and extending mine life. The Company is committing $17 million towards exploration in 2025, with a strong focus on K-Zone.
