New Gold Announces Closing of $150 Million
Undrawn Revolving Credit Facility
New Gold Inc. today announces that it has
entered into an agreement with a syndicate of banks to establish a $150
million undrawn revolving credit facility further enhancing the
company's financial flexibility. The facility, structured and arranged by Scotia
Capital and Commonwealth Bank of Australia, has an initial
term of three years, with annual extensions permitted, and provides New
Gold with additional liquidity supplementing the company's already strong
cash position. With the $58 million received from the December
1, 2010 sale of Beadell shares, the company
has over $425 million of cash today.
"We are very pleased to have the credit facility
in place as it provides our company with even greater financial
flexibility," stated Brian Penny, Executive Vice
President and Chief Financial Officer. "We now have additional liquidity
available as we look at various options to continue growing our business both
internally, through our organic projects and externally, through our corporate
development initiatives."
The syndicate of lenders includes the Bank of
Nova Scotia, Commonwealth Bank of Australia, UniCredit Bank AG, Royal Bank of Canada
and JP Morgan Chase Bank, N.A.
About New
Gold Inc.
New Gold is
an intermediate gold mining company with the Mesquite Mine
in the United States,
the Cerro San Pedro Mine in Mexico
and Peak Gold Mines in Australia.
The company is expected to produce between 330,000 and 360,000 ounces of gold
in 2010, growing to over 400,000 ounces in 2012. In addition, New
Gold has a strong portfolio of development and exploration assets in North
and South America. For further information on the company, please
visit www.newgold.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release,
including any information relating to New
Gold's future financial or operating performance may be deemed
"forward looking". All statements in this news release, other than
statements of historical fact, that address events or developments that New
Gold expects to occur, are "forward-looking statements".
Forward-looking statements are statements that are not historical facts and are
generally, but not always, identified by the words "expects",
"does not expect", "plans", "anticipates",
"does not anticipate", "believes", "intends",
"estimates", "projects", "potential",
"scheduled", "forecast", "budget" and similar
expressions, or that events or conditions "will", "would",
"may", "could", "should" or "might"
occur. All such forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and are subject
to important risk factors and uncertainties, many of which are beyond New
Gold's ability to control or predict. Forward-looking statements are
necessarily based on estimates and assumptions that are inherently subject to
known and unknown risks, uncertainties and other factors that may cause New
Gold's actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such forward-looking
statements. Such factors include, without limitation: significant capital
requirements; fluctuations in the international currency markets and in the
rates of exchange of the currencies of Canada,
the United States,
Australia, Mexico
and Chile; price
volatility in the spot and forward markets for commodities; impact of any
hedging activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and estimated reserves
and resources and between actual and estimated metallurgical recoveries;
changes in national and local government legislation in Canada,
the United States,
Australia, Mexico
and Chile or any
other country in which New Gold
currently or may in the future carry on business; taxation; controls,
regulations and political or economic developments in the countries in which New
Gold does or may carry on business; the speculative nature of mineral
exploration and development, including the risks of obtaining and maintaining
the validity and enforceability of the necessary licenses and permits and
complying with the permitting requirements of each jurisdiction that New
Gold operates, including, but not limited to, Mexico,
where New Gold is involved
with ongoing challenges relating to its environmental impact statement for the Cerro
San Pedro Mine; the lack of certainty with respect to the Mexican
and other foreign legal systems, which may not be immune from the influence of
political pressure, corruption or other factors that are inconsistent with the
rule of law; the uncertainties inherent to current and future legal challenges the
company is or may become a party to, including the third party claim related to
the El Morro transaction with respect to New
Gold's exercise of its right of first refusal on the El Morro copper-gold
project in Chile
and its partnership with Goldcorp Inc., which transaction and third
party claim were announced by New
Gold in January 2010; diminishing quantities or grades of
reserves; competition; loss of key employees; additional funding requirements;
actual results of current exploration or reclamation activities; changes in
project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or
property or contests over claims to mineral properties. In addition, there are
risks and hazards associated with the business of mineral exploration,
development and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and gold
bullion losses (and the risk of inadequate insurance or inability to obtain
insurance to cover these risks) as well as "Risk Factors" included in
New Gold's Annual Information
Form filed on March 26, 2010 and Management's Discussion and
Analysis for the year ended December 31, 2009, both available at
www.sedar.com. Forward-looking statements are not guarantees of future performance,
and actual results and future events could materially differ from those
anticipated in such statements. All of the forward-looking statements contained
in this news release are qualified by these cautionary statements. New
Gold expressly disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, events
or otherwise, except in accordance with applicable securities laws.