(All figures are in US dollars unless otherwise indicated)
VANCOUVER, Aug. 14, 2014 /CNW/ - New Gold Inc. ("New Gold")
(TSX:NGD) and (NYSE MKT:NGD) is pleased to announce that it has
entered into a $300 million revolving
credit facility with a syndicate of banks led by The Bank of
Nova Scotia and RBC Capital
Markets (the "Facility"). The Facility has a term of four years and
replaces the company's previous $150
million revolving credit facility. As the previous revolving
credit facility was put in place in late 2010 and set to expire in
December 2014, the Facility provides
New Gold with additional financial flexibility and extends the
term.
"The Facility further enhances our already strong financial
position," stated Brian Penny,
Executive Vice President and Chief Financial Officer. "We are
pleased to have put the new, larger Facility in place as it
reflects our successful growth since 2010 and provides us with
additional flexibility as we move forward."
Consistent with the previous revolving credit facility, New Gold
does not have any current plans to draw upon the Facility, however,
the company has used a portion of the Facility to issue letters of
credit primarily related to New Gold's reclamation requirements at
its operations and projects. When compared to the previous
revolving credit facility, the key terms of the Facility, including
standby fees, pricing and covenants, are more favourable to New
Gold. The Facility also provides New Gold the option, subject to
commitments, to draw an additional $50
million above and beyond the base $300 million.
The syndicate of banks includes the The Bank of Nova Scotia, Royal Bank of Canada, Canadian Imperial Bank of Commerce, JP
Morgan Chase Bank, N.A., The Toronto Dominion Bank, Bank of America
Merrill Lynch, Bank of Montreal
and Export Development Canada.
About New Gold Inc.
New Gold is an intermediate gold
mining company. The company has a portfolio of four producing
assets and three significant development projects. The New Afton
Mine in Canada, the Mesquite Mine
in the United States, the Peak
Mines in Australia and the Cerro
San Pedro Mine in Mexico, provide
the company with its current production base. In addition, New Gold
owns 100% of the Blackwater and
Rainy River projects, both in
Canada, as well as 30% of the El
Morro project located in Chile.
New Gold's objective is to be the leading intermediate gold
producer, focused on the environment and social responsibility. For
further information on the company, please visit
www.newgold.com.
SOURCE New Gold Inc.