New Gold Inc. (TSX/NYSE MKT: NGD) has entered into an agreement with a syndicate of underwriters led by RBC Dominion Securities Inc. and Scotia Capital Inc. for a bought deal of 53,600,000 common shares at US $2.80 per share for gross proceeds of approximately US $150 million.
New Gold has agreed to grant to the underwriters an option to purchase up to an additional 8,040,000 common shares at a price of US $2.80 per share.
New Gold intends to use the net proceeds to finance the completion of the construction of the Rainy River gold project in Ontario, Canada.
Cassels Brock & Blackwell LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as Canadian and US legal counsels to New Gold respectively. Davies Ward Phillips & Vineberg LLP and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal counsels to the underwriters.
The offering is scheduled to close on or about March 10, 2017.
photo credit: New Gold