New Gold announces sale of Peak Mines for $58M
New Gold announces that it has entered into a binding agreement with Aurelia Metals Limited to sell the Peak Mines located in Cobar, New South Wales, Australia for cash consideration of $58M. Aurelia intends to fund the Transaction through a combination of an A$45M debt facility provided by the Investec Group and an equity placement in the order of A$70M. Aurelia's largest shareholder, Pacific Road Capital Management Pty Ltd, has committed to Aurelia to subscribe for up to A$35M in the equity raising and increase their interest in Aurelia to 36.7% from 33.6%, subject to shareholder approval. Aurelia will pay at least a $3M deposit, which will be retained by New Gold in certain circumstances if the Transaction is not completed. The Transaction is subject to customary closing conditions, including Aurelia shareholder approval of a portion of the equity financing and consent from the New South Wales Minister responsible for the Mining Act 1992 for the transfer of control of certain exploration licenses, and is expected to close in the first quarter of 2018.