(All dollar figures are in US dollars unless otherwise
indicated)
TORONTO, March 10, 2017 /PRNewswire/ - New Gold Inc. ("New
Gold") (TSX:NGD) (NYSE MKT:NGD) is pleased to announce that it has
closed its previously announced bought deal financing of 61,640,000
common shares, including the exercise in full by the underwriters
of the over-allotment option, at a price of US$2.80 per share (the "Offering") for aggregate
gross proceeds to New Gold of approximately US$173 million.
New Gold intends to use the net proceeds from the Offering to
finance the completion of the construction of the Rainy River gold
project in Ontario, Canada.
The Offering was made through a syndicate of underwriters led by
RBC Capital Markets and Scotiabank and including CIBC Capital
Markets, J.P. Morgan, TD Securities Inc., BMO Capital Markets,
Merrill Lynch Canada Inc., Desjardins Securities Inc., National
Bank Financial Inc., Paradigm Capital Inc., Credit Suisse
Securities (Canada) Inc., Eight
Capital and GMP Securities L.P.
The Offering was completed by way of a short form prospectus
(the "Prospectus") in all of the provinces and territories of
Canada and was registered in
the United States pursuant to a
registration statement on Form F10, as amended (the "Registration
Statement"), in accordance with the Multijurisdictional Disclosure
System established between Canada
and the United States.
This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of New
Gold's common shares pursuant to the Offering in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to the registration or qualification of the offered shares under
the securities laws of that jurisdiction.
Before you invest in New Gold, you should read the Prospectus or
the Registration Statement, as well as the other documents that New
Gold has filed with the securities regulatory authorities, for more
complete information about New Gold and the Offering. You may
obtain these documents at no charge by visiting EDGAR on the SEC
website, at www.sec.gov, or on the SEDAR website, at www.sedar.com.
Alternatively, New Gold, any underwriter or any dealer
participating in the Offering will arrange to send you a written
Prospectus, or you may request the Prospectus in Canada by contacting RBC Capital Markets,
Distribution Centre, RBC Wellington Square, 8th Floor, 180
Wellington St. W., Toronto,
Ontario, M5J 0C2 (Tel: 416-842-5349; E-mail:
Distribution.RBCDS@rbccm.com) or Scotiabank, Scotia Plaza, 66th
Floor, 40 King Street West, Toronto,
Ontario, M5W 2X6, Attention: Equity Capital Markets (Tel:
416-862-5837), and, in the United
States, by contacting RBC Capital Markets, LLC, 200 Vesey
Street, 8th Floor, New York, NY
10281-8098; Attention: Equity Syndicate; (Tel: 1-877-822-4089;
E-mail: Equityprospectus@rbccm.com) or Scotia Capital (USA) Inc., 250 Vesey Street, 24th Floor,
New York, New York, 10281,
Attention: Equity Capital Markets (Tel: 212-225-6853).
ABOUT NEW GOLD INC.
New Gold is an intermediate gold mining company. The company has
a portfolio of four producing assets and two 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 (which transitioned
to residual leaching in 2016), provide the company with its current
production base. In addition, New Gold owns 100% of the Rainy River
and Blackwater projects located in Canada. New Gold's objective is to be the
leading intermediate gold producer, focused on the environment and
social responsibility.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this news release, including
any information relating to New Gold's future financial or
operating performance are "forward looking". All statements in this
news release, other than statements of historical fact, which
address events, results, outcomes or developments that New Gold
expects to occur are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "targeted", "estimates", "forecasts", "intends",
"anticipates", "projects", "potential", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "should", "might" or "will be
taken", "occur" or "be achieved" or the negative connotation of
such terms. Forward-looking statements in this news release
include, among others, statements with respect to the use of the
proceeds of the Offering and the completion of the Rainy River
project.
All forward-looking statements in this news release are based on
the opinions and estimates of management as of the date such
statements are made and are subject to important risk factors and
uncertainties, many of which are beyond New Gold's ability to
control or predict. The forward-looking statements in this news
release are based on certain key assumptions, including without
limitation, the assumption that no events will occur requiring the
redirecting of the proceeds of the Offering towards other uses and
that the cost estimates for the Rainy River project will be
accurate. Certain other material assumptions regarding such
forward-looking statements are discussed in this news release, New
Gold's annual and quarterly management's discussion and analysis
("MD&A"), its Annual Information Form and its Technical Reports
filed at www.sedar.com.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: the occurrence of events requiring the redirecting of
the proceeds of the Offering or other sources of funding towards
other uses; significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States, Australia and Mexico; discrepancies between actual and
estimated production, between actual and estimated mineral reserves
and mineral resources and between actual and estimated
metallurgical recoveries; fluctuation in treatment and refining
charges; changes in national and local government legislation; the
speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining the validity and
enforceability of the necessary licenses and permits and complying
with the permitting requirements of each jurisdiction in which New
Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for
the Rainy River project; the uncertainties inherent to current and
future legal challenges New Gold is or may become a party to;
inherent uncertainties with cost estimates and estimated schedule
for the construction and commencement of production at Rainy River as contemplated; loss of key
employees; rising costs of labour, supplies, fuel and equipment;
actual results of current exploration or reclamation activities;
uncertainties inherent to mining economic studies including the
feasibility studies for the Rainy River project; changes in project
parameters as plans continue to be refined; accidents; labour
disputes; defective title to mineral claims or property or contests
over claims to mineral properties; unexpected delays and costs
inherent to consulting and accommodating rights of indigenous
groups; risks, uncertainties and unanticipated delays associated
with obtaining and maintaining necessary licenses, permits and
authorizations and complying with permitting requirements,
including those associated with the amendment to Schedule 2 of the
Metal Mining Effluent Regulations for the Rainy River project. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental events and hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion losses and risks associated with the start of production of
a mine, such as Rainy River, (and
the risk of inadequate insurance or inability to obtain insurance
to cover these risks) as well as "Risk Factors" included in New
Gold's disclosure documents filed on and available at
www.sedar.com. Forward-looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All of
the forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
SOURCE New Gold Inc.