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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (67392)	10/7/2009 9:56:15 AM
From: Tommaso	Read Replies (1) \| Respond to of 78407

New Gold Announces $15 Million Prepayment of, and Amendment to the Mesquite Mine Term Loan Facility and Board Update 10/07/2009 Download this Press Release (All figures are in US dollars unless otherwise stated) VANCOUVER, Oct. 7 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX: NGD) announces that it has agreed to amend the Mesquite mine term loan facility and make a prepayment of $15 million. The prepayment reduces the outstanding principal of the loan to $45.8 million, with scheduled repayment by June 30, 2012. As at June 30, 2009, New Gold had $141 million of cash. In addition, the company received gross proceeds of $107 million from an equity financing which closed on September 11, 2009. After the $15 million loan prepayment and a $3 million sweep payment, New Gold has $250 million of outstanding debt. Randall Oliphant, Executive Chairman of New Gold stated, "The Mesquite loan allowed us to build the mine with minimal dilution to shareholders. We are pleased with the amendments to the term loan facility and the strong business partnership with Investec Bank plc ("Investec") and the lending syndicate. Our strong cash position, coupled with cash flow generated from operations, enabled us to make the loan prepayment, reducing our overall debt outstanding, strengthening our financial position and providing greater flexibility going forward." The lending syndicate, lead by Investec, now considers the development of Mesquite complete and has released the guarantee provided by Western Goldfields Inc. In addition, the remaining available commitment of $18.6 million, which New Gold no longer requires, has been cancelled along with all related costs to the company. The revised interest rate is US dollar LIBOR plus 4.25% and New Gold paid an approval fee of $229,000. The term loan facility is now repayable by June 30, 2012 unless the company chooses to repay the loan early or the sweep mechanism comes into effect. New Gold has increased flexibility in considering its options with respect to the gold hedge program, a required condition precedent to the loan facility, that now extends two and half years beyond the revised term to December 31, 2014, the original term prior to prepayment. Approximately 165,000 ounces of gold, or approximately half of the program, are hedged beyond June 30, 2012 and may be terminated by New Gold. New Gold also announced a change to its Board of Directors. Paul Sweeney has stepped down from the New Gold Board of Directors effective September 21, 2009, due to other commitments. We would like to take this opportunity to thank Mr. Sweeney for his invaluable contributions to the Board of New Gold and wish him continued success in future endeavours.