News Release - Thursday, June 14, 2007
New Gold Announces Pricing of C$275 Million Debt Financing
New Gold Inc. prices $55 million 5% Subordinated Convertible Debentures
and $220 million Units
Not for distribution to U.S. news wire services or dissemination in the
June 14, 2007, Vancouver, British Columbia -- New Gold Inc.
(NGD:TSX/AMEX) Further to its previously announced (May 29, 2007 and
May 30, 2007) offering (the "Offering") of Units, Debentures,
Flow-Through Shares and Shares, New Gold Inc. ("New Gold") is pleased
to announce the pricing of the 5% Subordinated Convertible Debentures
(the "Debentures") and the Units to be sold pursuant to the Offering.
New Gold proposes to issue and sell up to $55 million of Debentures and
up to $220 million of Units. The Debentures have a 7-year term, a 5%
coupon and a conversion price of $9.35 per share. The Units consist of
an unsecured series D note with a face value of $1,000, a 10% coupon
and a 10-year term. In addition, each Unit also consists of 100 common
share purchase warrants, each exercisable to acquire one common share
of New Gold for a period of 10 years at an exercise price of $15.00 per
share. The Underwriters have been granted an option to arrange for the
purchase of up to an additional 10% of the Units and the Debentures at
any time up to 30 days following closing. The Offering is subject to
certain conditions, including regulatory and TSX approval, and is
expected to close on or about June 28, 2007.
The Offering is being conducted on a best efforts basis through a
syndicate of underwriters led by GMP Securities L.P. and including BMO
Nesbitt Burns Inc., Orion Securities Inc., Jennings Capital Inc. and
Wellington West Capital Markets Inc.
New Gold will use the proceeds of the Offering to fund the
pre-production development required to bring its New Afton Project into
production, and to commence the expansion phase of the development
during which time the mine will ramp-up to its full production rate.
The New Afton Project is situated 10 kilometres west of Kamloops,
British Columbia, Canada.
The securities referenced herein have not been and will not be
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.
For more information, contact:
President and Chief Executive Officer
New Gold Inc.
601 - 595 Howe Street, Vancouver, B.C. V6C 2T5
Tel: 877-977-1067 or 604-687-1629, Fax: 604-687-2845
Certain of the statements made and information contained herein is
"forward- looking information" within the meaning of the Securities
(Ontario) and Securities Act (Alberta) or "forward-looking
within the meaning of Section 21E of the Securities Exchange Act of
1934 of the United States. Forward-looking statements are subject to a
variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking
statements, including, without limitation, risks and uncertainties
relating to the interpretation of drill results and the estimation of
mineral resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration, development
or mining results will not be consistent with the Company's
expectations, metal recoveries, accidents, equipment breakdowns, title
matters and surface access, labour disputes or other unanticipated
difficulties with or interruptions in production, the potential for
delays in exploration or development activities or the completion of
feasibility studies, the inherent uncertainty of production and cost
estimates and the potential for unexpected costs and expenses,
commodity price fluctuations, currency fluctuations, failure to obtain
adequate financing on a timely basis and other risks and uncertainties,
including those described under Risk Factors Relating to the Company's
Business in the Company's Annual Information Form and in each
management discussion and analysis. Forward-looking information is in
addition based on various assumptions including, without limitation,
the expectations and beliefs of management, the assumed long term price
of copper and gold, that the feasibility study will confirm that a
technically viable and economic operation exists, that the Company will
receive required permits and access to surface rights, that the Company
can access financing, appropriate equipment and sufficient labour and
that the political environment within British Columbia and Canada will
continue to support the development of environmentally safe mining
projects so that the Company will be able to commence the development
of the New Afton project within the timetable to be established by the
feasibility study. Should one or more of these risks and uncertainties
materialize, or should underlying assumptions prove incorrect, actual
results may vary materially from those described in forward-looking
statements. Accordingly, readers are advised not to place undue
reliance on forward-looking statements.
Cautionary note to U.S. investors concerning estimates of Measured,
Indicated and Inferred Resources, and the use of the terms "measured"
"indicated resources," and "inferred". We advise U.S.
while those terms are recognized and required by Canadian regulations,
the U.S. Securities and Exchange Commission ("SEC") permits mining
companies, in their filings with the SEC, to disclose only those
mineral deposits that a company can economically and legally extract or
produce and does not recognize them. "Inferred" resources have a
amount of uncertainty as to their existence and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all or
any part of an "Inferred" resource will ever be upgraded to a higher
category. Under Canadian rules, estimates of "Inferred" resources may
not form the basis of feasibility or pre-feasibility studies, except in
rare cases. U.S. investors are cautioned not to assume that any part
or all of mineral deposits in these categories will ever be converted
into reserves or be economically or legally mineable.
WARNING: The Company relies upon litigation protection for
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Copyright (c) 2007 NEW GOLD INC. (TSX/AMEX:NGD) All rights reserved.
For more information visit our website at http://www.newgoldinc.com/ or
Message sent on Thu Jun 14, 2007 at 10:54:36 AM Pacific Time