7.5% dilution of NGD.
New Gold Announces Bought Deal Financing for Gross Proceeds of $100 Million 08/21/2009
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New Gold Announces Bought Deal Financing for Gross Proceeds of $100 Million
Not for distribution to U.S. news wire services or dissemination in the United States
(All figures are in Canadian dollars unless otherwise stated)
August 21, 2009 – VANCOUVER, BC – New Gold Inc. (“New Gold”) (TSX and NYSE AMEX – NGD) today announced that it has entered into an agreement with a syndicate of underwriters, under which the underwriters have agreed to buy on a bought deal basis by way of a short form prospectus, 26,700,000 Common Shares (the “Common Shares”) at a price of $3.75 per Common Share for gross proceeds of $100,125,000. The Company has granted the underwriters an option, for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of the Offering to cover over-allotments, if any. The net proceeds of the offering will be used for general corporate purposes. The offering is expected to close on or about September 11, 2009 and is subject to the Company receiving all necessary regulatory approvals.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
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. The Company is expected to produce between 330,000 and 360,000 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 www.newgold.com
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