NEW GOLD CONSOLIDATES 100% INTEREST IN ITS NEW AFTON MINE
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New Gold Inc. has entered into an agreement to acquire the remaining 19.9% free cash flow interest in its New Afton Mine from Ontario Teachers' Pension Plan for $300 million. The transaction will be funded through cash on hand, existing credit facility, and a gold prepayment financing of $100 million. This move fully consolidates New Gold's ownership and is expected to drive significant free cash flow growth through increased production and improved costs.

April 07, 2025 | 10:45 am
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POSITIVE IMPACT
Full ownership acquisition of New Afton Mine is expected to enhance free cash flow generation and provide increased upside potential through near-mine exploration activities.
The acquisition eliminates partnership complexity, provides full cash flow exposure, and signals management's confidence in the mine's future potential. No equity dilution and planned exploration investment make this a positive strategic move.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100