SEATTLE (Scrap Monster): Canadian gold miner New Gold Inc. announced that it has completed the strategic partnership with the Ontario Teachers’ Pension Plan (OTPP) in acquiring a 46% free cash flow interest in the New Afton gold mine in western British Columbia. The two parties had entered into a partnership deal towards end-February this year.
The upfront cash payment of $300 million will be used to reduce debt and boost financial flexibility.
According to the partnership deal, New Gold will retain full operational control over the mine, with a buyback option to re-purchase 100% interest in New Afton’s cash flow and cancel the partnership during the agreed period. The company also retains 100% exploration claims that lie outside of the mine’s permit area.
ALSO READ: Equinox Gold Aims to Triple Gold Production
Also, OTPP will have 46% interest in the mine for a period of four years. Upon completion of this period, it has an option to convert the interest into a 46% joint venture with New Gold Inc. Instead, it could continue to retain a free cash flow interest in the gold mine, but at a reduced rate of 42.5%.
The New Afton mine had produced 69,000 oz of gold in 2019. The ongoing C-zone development at the mine could extend its life to 2030.
Copper Scrap View All | |
Alternator | 0.32 (0) |
#1 Copper Bare Bright | 3.76 (-0.01) |
Aluminum Scrap View All | |
356 Aluminum Wheels (Clean) | 0.73 (0) |
6061 Extrusions | 0.64 (0) |
Steel Scrap View All | |
#1 Bundle | 460.00 (-15) |
#1 Busheling | 480.00 (-15) |
Electronics Scrap View All |