White Knight--maybe
New Gold to sell Blackwater Au stream for $300M (U.S.)
2021-12-13 17:33 ET - News Release
Mr. Renaud Adams reports
NEW GOLD TO SELL BLACKWATER GOLD STREAM FOR US$300 MILLION
New Gold Inc. has entered into a definitive agreement with Wheaton Precious Metals Corp. to sell the existing gold stream held on the Blackwater project located in British Columbia, Canada. Blackwater is wholly owned by Artemis Gold Inc., with New Gold having retained the gold stream as partial consideration for the divestiture of Blackwater to Artemis on Aug. 21, 2020.
Details of the transaction are as follows:
- New Gold will receive upfront cash consideration of $300-million (U.S.) from Wheaton upon closing of the transaction;
- The gold stream entitles Wheaton to 8 per cent of the gold produced from Blackwater, reducing to 4 per cent of gold production once approximately 280,000 ounces of gold have been delivered to Wheaton. Gold delivered under the stream is subject to a continuing cash price equal to 35 per cent of the spot gold price, payable to Artemis.
"This transaction highlights another milestone for New Gold as we continue to surface value from the divestment of the Blackwater project. The cash payment will provide additional liquidity and financial capacity to New Gold as we continue to execute on our strategy," stated Renaud Adams, president and chief executive officer.
New Gold has agreed to waive its right of first refusal with respect to Wheaton's offer on Nov. 15, 2021, to purchase a silver stream on Blackwater from Artemis. Artemis has also waived its right of first offer to acquire the gold stream, which was available to Artemis under the terms of the gold stream agreement. The transaction is expected to close by the end of 2021.
Scotiabank is acting as financial adviser to New Gold, and Davies Ward Phillips & Vineberg LLP is acting as New Gold's legal adviser.
About New Gold Inc.
New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The company also holds a 5-per-cent equity stake in Artemis Gold Inc. and other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to environment and social responsibility.
In the past , I have tracked SR's trading activities thru Scotia...just saying......maybe GLO gets involved too......there are still 600 million shares floating out there not belonging to NG or Appian...Ok , so maybe its not over yet