New Gold Announces Closing of Previously Announced Sale of the Blackwater Project to Artemis Gold
August 24 2020 - 7:00AM
Business Wire
(All dollar figures are in Canadian dollars unless otherwise
indicated)
August 24, 2020--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. For further information on the Company, visit
www.newgold.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this press release are
“forward-looking”. All statements in this press 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. Often, but not always,
forward-looking statements can be 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 press release include the obligation of Artemis to pay $50
million to New Gold on August 21, 2021.
All forward-looking statements in this press release are based
on the opinions and expectations 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. Certain material assumptions regarding such
forward-looking statements are discussed in New Gold’s latest
annual and quarterly management's discussion and analysis
(“MD&A”), Annual Information Form and Technical Reports filed
at www.sedar.com and on EDGAR at www.sec.gov.
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 “Risk Factors” included in New Gold's Annual
Information Form, MD&A and other disclosure documents filed on
and available at www.sedar.com and on EDGAR at www.sec.gov.
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 press 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200824005173/en/
Anne Day Vice President, Investor Relations Direct: +1 (416) 324
6003 Email: anne.day@newgold.com
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