NEW GOLD COMPLETES 100% CONSOLIDATION OF THE FREE CASH FLOW INTEREST IN ITS NEW AFTON MINE

Rhea-AI Summary

New Gold Inc. (NYSE: NGD) has successfully completed the acquisition of the remaining 19.9% free cash flow interest in its New Afton Mine from Ontario Teachers' Pension Plan. This transaction results in New Gold now owning 100% of the free cash flow interest in New Afton. The completion of this deal terminates all existing agreements with Ontario Teachers' regarding their free cash flow interest in the mine.

Positive

• Full consolidation of New Afton Mine's free cash flow (100% ownership)
• Elimination of profit-sharing obligations with Ontario Teachers' Pension Plan
• Enhanced control over New Afton's cash flow distribution

Negative

• Cash outflow required to complete the acquisition (though amount not disclosed)

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

TORONTO, May 1, 2025 /PRNewswire/ -  New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to announce that the previously announced agreement with Ontario Teachers' Pension Plan ("Ontario Teachers'") to acquire the remaining 19.9% free cash flow interest in the Company's New Afton Mine ("New Afton") (the "Transaction") has now closed. The Company has now fully consolidated its free cash flow interest in New Afton to 100% and terminated all existing agreements with respect to Ontario Teachers' free cash flow interest in New Afton.

About New Gold 

New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the New Afton copper-gold mine and the Rainy River gold mine. New Gold's vision is to be the most valued intermediate gold and copper producer through profitable and responsible mining for our shareholders and stakeholders. For further information on the Company, visit www.newgold.com. 

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SOURCE New Gold Inc.

FAQ

What percentage of New Afton Mine's free cash flow does New Gold (NGD) now own?

New Gold now owns 100% of the free cash flow interest in New Afton Mine, after acquiring the remaining 19.9% from Ontario Teachers' Pension Plan.

Who did New Gold (NGD) acquire the remaining New Afton Mine interest from?

New Gold acquired the remaining 19.9% free cash flow interest from Ontario Teachers' Pension Plan.

When did New Gold (NGD) complete the New Afton Mine consolidation?

New Gold completed the consolidation of New Afton Mine's free cash flow interest on May 1, 2025.

What is the significance of NGD's New Afton Mine consolidation?

The consolidation gives New Gold full control over New Afton Mine's free cash flow and terminates all existing agreements with Ontario Teachers' Pension Plan regarding their interest in the mine.