New Gold (NGD) said Monday it has agreed to acquire the remaining 19.9% free cash flow interest in Canada's New Afton Mine from the Ontario Teachers' Pension Plan for $300 million in cash.
The acquisition will bring New Gold's interest in New Afton to 100%, the company said.
New Gold said it plans to fund the transaction with cash on hand, loans from its revolving credit facility, and $100 million in exchange for a set amount of gold to be provided over 12 months.
The transaction is expected to close at the beginning of May, the company said.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.