New Gold sells Mesquite Mine to Eqiunox Gold for $158M
New Gold has entered into a definitive share purchase agreement with Equinox Gold to sell its Mesquite Mine located in California. New Gold will receive $158M in cash upon completion of the transaction. Equinox intends to fund the transaction through a combination of committed debt and equity. The proceeds of the transaction will be used to strengthen the balance sheet and enhance the overall financial flexibility of the company. The transaction is subject to customary closing conditions, including completion of the debt and equity financings by Equinox, but it does not require an Equinox shareholder vote. Completion of the transaction is expected to occur during Q4. Equinox Gold will also assume bonding obligations with the applicable environmental regulatory authorities with respect to Mesquite's long-term reclamation obligations.