Toronto, Ontario (August 8, 2019) – New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) has announced today that it has entered into an agreement with a syndicate of underwriters, under which the underwriters have agreed to buy on a bought deal basis 93,750,000 common shares (the “Common Shares”), at a price of C$1.60 per Common Share for gross proceeds of C$150 million (the “Offering”). The Company has granted the underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The Offering is expected to close on or about August 30, 2019 and is subject to New Gold receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
The net proceeds of the Offering will be used by the Company to enhance financial flexibility, strengthen the balance sheet, including debt repayment, and general corporate purposes.
The Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada, and may also be offered by way of private placement in the United States.
This press release is not an offer to sell or a solicitation of an offer to buy any securities in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), and may not be offered or sold in the United States or to a U.S. person (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from registration.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining Company. The Company has a portfolio of two core producing assets in top-rated jurisdictions, the Rainy River and New Afton Mines in Canada. The Company also operates the Cerro San Pedro Mine in Mexico (which transitioned to residual leaching in 2016). In addition, New Gold owns 100 per cent of the Blackwater project located in Canada. New Gold’s objective is to be a leading intermediate gold producer, focused on the environment and social responsibility. For further information on the Company, please visit www.newgold.com