New Gold announces sale of El Morro gold stream for $65 million
Friday, Feb 10, 2017
New Gold Inc. ("New Gold") (TSX:NGD) (NYSE MKT:NGD)
announces that the company has entered into a binding letter agreement
with Goldcorp Inc. ("Goldcorp") to sell the company's gold stream on the
El Morro project to Goldcorp for $65 million cash (the "Transaction").
The Transaction will provide New Gold with additional liquidity as the
company advances the construction of its Rainy River project, which is
scheduled to commence production in September 2017.
in El Morro has generated significant value for our company over the
last several years," stated Hannes Portmann, President and Chief
Executive Officer. "The sale of the stream allows us to realize $65
million from an asset that is not a core part of our portfolio to
support our key, near-term growth project at Rainy River."
total expenditures on El Morro by New Gold and its predecessor companies
since the asset was first acquired has been less than $7 million. New
Gold is proud that, including the $65 million payment for the stream,
the company will have generated total proceeds of $205 million through a
series of transactions related to El Morro over the last seven years.
has been a great partner to New Gold at El Morro and the company wishes
them continued success as they advance the property over the coming
The Transaction is subject to customary conditions,
including the negotiation of a definitive agreement. All required
internal Goldcorp and New Gold approvals of the Transaction have been
obtained. The Transaction is expected to close in February 2017.
For more information, please visit: http://www.newgold.com/