Re: News Release - Wednesday, May 30, 2007
New Gold Announces Terms of Underwritten Offering
May 30, 2007, Vancouver, British Columbia -- New Gold Inc.
(NGD:TSX/AMEX) is pleased to announce, that further to its previously
announced (May 29, 2007) offering (the "Offering") of Units,
Debentures, Shares and Flow-Through Shares, that that it has entered
into an underwriting agreement with a syndicate of underwriters led by
GMP Securities Inc. BMO Nesbitt Burns Inc, Orion Securities Inc.,
Jennings Capital Inc. and Wellington West Capital Markets Inc., (the
"Syndicate") to sell 10,700,000 Common Shares at $7.50 per Share and
2,055,000 Flow-Through Shares at $9.75 per Share for gross proceeds of
$100,286,500 million. New Gold has granted the Syndicate an
over-allotment option to purchase up to 1,500,000 Shares exercisable at
any time up to 30 days from closing. The Offering is subject to
certain conditions, including regulatory and Toronto Stock Exchange
approval and is expected to close on or about June 28, 2007.
The remainder of the Offering announced May 29, 2007 is being completed
on a best efforts agency basis and will be priced in the context of the
market with final terms to be determined at the time of pricing.
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.
New Gold continues to be in a strong financial condition with a current
cash position of approximately $55 million and no debt. The Company
has only 24.0 million shares outstanding and 30.5 million shares fully
For further information on New Gold Inc. and the New Afton Project,
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 Act
(Ontario) and Securities Act (Alberta) or "forward-looking statements"
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 the terms
"measured","indicated resources," and "inferred". We advise U.S.
investors that, 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 great 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
View News Release in PDF Format:
25 KB in size, approx. 6 seconds to download at 56.6Kbps
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 Wed May 30, 2007 at 8:38:03 AM Pacific Time