New Gold Successfully Secures US$173 Million Bought Deal Financing

New Gold Inc. Announces Completion of $173 Million Bought Deal Financing

(All dollar figures are in US dollars unless otherwise indicated)

TORONTO, May 17, 2024 /CNW/ –New Gold Inc. (“New Gold” or the “Company”) (TSX: NGD) (NYSE American: NGD) has successfully closed its “bought deal” equity financing of 100,395,000 common shares, including 13,095,000 common shares issued upon the full exercise of the underwriters’ over-allotment option. The offering, at a price of $1.72 per common share, raised aggregate gross proceeds of $172,679,400. The syndicate of underwriters, led by CIBC Capital Markets, included other prominent firms such as BMO Capital Markets, RBC Capital Markets, TD Securities, and Scotiabank.

Utilization of Proceeds

The net proceeds from the offering will be utilized by New Gold to fund a portion of the cash payment required to finalize its strategic partnership agreement with Ontario Teachers’ Pension Plan Board at the New Afton mine, increasing the Company’s interest in New Afton to 80.1%.

About New Gold Inc.

New Gold is a Canadian intermediate mining company with core assets in Canada, including the Rainy River gold mine and the New Afton copper-gold mine. The company is committed to environmental sustainability and social responsibility while aiming to become a leading diversified intermediate gold company based in Canada.

Insights

The completion of this financing deal showcases New Gold’s ability to secure funding for strategic endeavors, highlighting investor confidence in the company’s future growth prospects. By increasing its stake in the New Afton mine, New Gold is strategically strengthening its position in the mining sector and enhancing its revenue streams.

Cautionary Note Regarding Forward-Looking Statements

The forward-looking statements in this news release emphasize the importance of risk factors and uncertainties inherent in predicting financial or operational performance. The Company’s ability to control or predict external disruptions that may impact its operations remains a critical consideration.

Furthermore, the forward-looking statements underscore the necessity of evaluating and managing potential risks to ensure the Company’s long-term success and profitability in a dynamic market environment.

View original content to download multimedia:

SOURCE New Gold Inc.

© Canada Newswire, source Canada Newswire English