cnw
(All figures are in US dollars unless otherwise indicated)
VANCOUVER, Dec. 16 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE
AMEX:NGD) today announces that it has entered into an agreement with a
syndicate of banks to establish a $150 million undrawn revolving credit
facility further enhancing the company's financial flexibility. The
facility, structured and arranged by Scotia Capital and Commonwealth
Bank of Australia, has an initial term of three years, with annual
extensions permitted, and provides New Gold with additional liquidity
supplementing the company's already strong cash position. With the $58
million received from the December 1, 2010 sale of Beadell shares, the
company has over $425 million of cash today.
"We are very pleased to have the credit facility in place as it provides
our company with even greater financial flexibility," stated Brian
Penny, Executive Vice President and Chief Financial Officer. "We now
have additional liquidity available as we look at various options to
continue growing our business both internally, through our organic
projects and externally, through our corporate development
initiatives."
The syndicate of lenders includes the Bank of Nova Scotia, Commonwealth
Bank of Australia, UniCredit Bank AG, Royal Bank of Canada and JP
Morgan Chase Bank, N.A.
About New Gold Inc.
New Gold is an intermediate gold mining company with the Mesquite Mine
in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold
Mines in Australia. The company is expected to produce between 330,000
and 360,000 ounces of gold in 2010, growing to over 400,000 ounces in
2012. In addition, New Gold has a strong portfolio of development and
exploration assets in North and South America. For further information
on the company, please visit http://www.newgold.com/">www.newgold.com.
