TORONTO, Dec. 13, 2021 /PRNewswire/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to announce that it has entered into a definitive agreement (the "Agreement") with Wheaton Precious Metals Corp. ("Wheaton") to sell the existing gold stream held on the Blackwater Project ("Blackwater") located in British Columbia, Canada (the "Transaction"). Blackwater is wholly-owned by Artemis Gold Inc. ("Artemis"), with New Gold having retained the gold stream as partial consideration for the divestiture of Blackwater to Artemis on August 21, 2020.

Details of the Transaction are as follows:

New Gold will receive upfront cash consideration of US$300 million from Wheaton upon closing of the Transaction;

The gold stream entitles Wheaton to 8% of the gold produced from Blackwater, reducing to 4% of gold production once approximately 280,000 ounces of gold have been delivered to Wheaton. Gold delivered under the stream is subject to an ongoing cash price equal to 35% of the spot gold price, payable to Artemis.
"This transaction highlights another milestone for New Gold as we continue to surface value from the divestment of the Blackwater Project. The cash payment will provide additional liquidity and financial capacity to New Gold as we continue to execute on our strategy," stated Renaud Adams, President & CEO.

New Gold has agreed to waive its right of first refusal with respect to Wheaton's offer on November 15, 2021 to purchase a silver stream on Blackwater from Artemis. Artemis has also waived its right of first offer to acquire the gold stream, which was available to Artemis under the terms of the gold stream agreement. The Transaction is expected to close by the end of 2021.

Scotiabank is acting as financial advisor to New Gold, and Davies Ward Phillips & Vineberg LLP is acting as New Gold's legal advisor.

About New Gold
New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds a 5% equity stake in Artemis Gold Inc. and other Canadian-focused investments. 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