New Gold Announces Closing of Bought Deal Financing and Over-Allotment Option Exercise for Total Gross Proceeds of C$115 million
11 September 2009 - 3:19PM
PR Newswire (US)
VANCOUVER, Sept. 11 /PRNewswire-FirstCall/ -- New Gold Inc. ("New
Gold") (TSX and NYSE AMEX: NGD) is pleased to announce the
successful closing of its previously announced bought deal public
offering of 26,700,000 common shares and the underwriters' exercise
in full of an over-allotment option to purchase an additional
4,005,000 common shares granted by New Gold in connection with such
offering at a price of C$3.75 per share for total gross proceeds to
New Gold of approximately C$115 million. Randall Oliphant,
Executive Chairman of New Gold said "We are delighted by the
markets' interest in the company with the successful closing of the
financing and the over-allotment. This transaction brings new
shareholders to New Gold, further strengthens our financial
position and provides greater flexibility to realize value from
current assets and through additional growth opportunities." The
syndicate of underwriters was led by BMO Capital Markets and GMP
Securities L.P., and included Canaccord Capital Corporation, RBC
Dominion Securities Inc., Scotia Capital Inc., TD Securities Inc.,
National Bank Financial Inc., Paradigm Capital Inc. and Wellington
West Capital Markets Inc. About New Gold New Gold is an
intermediate gold mining company, headquartered in Vancouver,
British Columbia, Canada with three operating assets; the Mesquite
Mine in the United States, Cerro San Pedro Mine in Mexico and Peak
Mines in Australia. For the period of New Gold ownership of the
Mesquite mine, the Company is expected to produce between 270,000
and 300,000 ounces of gold in 2009, growing to over 400,000 ounces
in 2012 and have significant reserves and resources with a strong
portfolio of mining, development and exploration assets in mining
friendly jurisdictions. For further information on New Gold, please
visit http://www.newgold.com/. CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS Certain information contained in this
press release, including any information relating to New Gold's
future financial or operating performance may be deemed "forward
looking". All statements in this press release, other than
statements of historical fact, that address events or developments
that New Gold expects to occur, are "forward-looking statements".
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "does not expect", "plans", "anticipates", "does not
anticipate", "believes", "intends", "estimates", "projects",
"potential", "scheduled", "forecast", "budget" and similar
expressions, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward looking
statements are subject to important risk factors and uncertainties,
many of which are beyond New Gold's ability to control or predict.
Forward-looking statements are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks,
uncertainties and other factors that may cause New Gold's actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: New Gold's anticipated synergies from the business
combination with Western Goldfields Inc. may not be realized; there
may be difficulties in integrating the operations and personnel of
New Gold; significant capital requirements; fluctuations in the
international currency markets and in the rates of exchange of the
currencies of Canada, the United States, Australia, Brazil, Mexico
and Chile; price volatility in the spot and forward markets for
commodities; impact of any hedging activities, including margin
limits and margin calls; discrepancies between actual and estimated
production, between actual and estimated reserves and resources and
between actual and estimated metallurgical recoveries; changes in
national and local government legislation in Canada, the United
States, Australia, Brazil, Mexico and Chile or any other country in
which New Gold currently or may in the future carry on business;
taxation; controls, regulations and political or economic
developments in the countries in which New Gold does or may carry
on business; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses
and permits; diminishing quantities or grades of reserves;
competition; loss of key employees; additional funding
requirements; actual results of current exploration or reclamation
activities; changes in project parameters as plans continue to be
refined; accidents; labour disputes; defective title to mineral
claims or property or contests over claims to mineral properties.
In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks) as well as "Risks Factors"
included in New Gold's Annual Information Form filed on March 31,
2009 and Management Information Circular filed on April 15, 2009,
both available at http://www.sedar.com/. Forward-looking statements
are not guarantees of future performance, and actual results and
future events could materially differ from those anticipated in
such statements. All of the forward-looking statements contained in
this press release are qualified by these cautionary statements.
New Gold expressly disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, events or otherwise, except in accordance with
applicable securities laws. DATASOURCE: New Gold Inc. CONTACT: M
lanie Hennessey, Vice President Investor Relations, New Gold Inc.,
Direct: (604) 639-0022, Toll-free: (888) 315-9715, Email: ;
Website: http://www.newgold.com/
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