- New Gold (NYSE:NGD +12.8%) surges after agreeing to sell a 46% free cash flow stake in its New Afton mine to Ontario Teachers' Pension Plan for $300M.
- The deal also gives the pension fund an option to convert the holdings into a 46% joint venture interest in four years; if the JV option is not exercised, the fund's free cash flow interest in the mine would drop to 42.5%.
- New Gold says it will retain full operating control over New Afton during development of the C-Zone, as the mine transitions to expand its operating mine life.
- The miner says it will use the proceeds to reduce long-term debt, which totaled $714.5M at year-end 2019.