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New Gold Announces $300 Million Partnership with Ontario Teachers’ Pension Plan at the New Afton Mine


On February 25, 2020, New Gold Inc. announced that it has entered into a strategic partnership with Ontario Teachers’ Pension Plan. Under the terms of the strategic partnership, Ontario Teachers’ has agreed to acquire a 46.0% free cash flow interest in the new Afton mine with an option to convert the interest into a 46.0% joint venture interest in four years, or have their interest remain as a free cash flow interest at a reduced rate of 42.5%, for upfront cash proceeds of $300 million payable upon closing of the transaction. The transaction is expected to close on or about March 31, 2020.

Cassels is acting for New Gold with a deal team that includes Ann Watterworth, Alex Iliopoulos, Mark Bennett, Lindsay Clements, Jackson Phillips and Miriam El Ofir (Securities and Mining), and Chris Norton (Tax).

RELATED EXPERTISE: Securities | Mining | Taxation