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New Gold Completes US$173 Million MJDS Bought Deal

Published: 03/10/2017

Team: Mark T. Bennett, Andre Boivin, Christopher B. Norton

On March 10, 2017, New Gold Inc., a gold mining company listed on the Toronto Stock Exchange and the NYSE MKT, completed a bought deal financing of 61,640,000 common shares, including the exercise in full by the underwriters of the over-allotment option, at a price of US$2.80 per share for aggregate gross proceeds of approximately US$173 million. The net proceeds from the offering are intended to be used to finance the completion of the construction of the Rainy River gold project in Ontario, Canada.

The offering was made by way of prospectus pursuant to the multijurisdictional disclosure system (MJDS) through a syndicate of underwriters led by RBC Capital Markets and Scotiabank and including CIBC Capital Markets, J.P. Morgan, TD Securities Inc., BMO Capital Markets, Merrill Lynch Canada Inc., Desjardins Securities Inc., National Bank Financial Inc., Paradigm Capital Inc., Credit Suisse Securities (Canada) Inc., Eight Capital and GMP Securities L.P.

Cassels Brock acted as Canadian counsel to New Gold with a team co-led by Mark Bennett and André Boivin and composed of Zohar Barzilai (Securities and Mining) and Chris Norton (Tax).