By Sheri Kasprzak
New York, Feb. 1 - New Gold Inc. said it plans to raise C$50.4 million in a private placement.
The company plans to sell 5.6 million units at C$9.00 each.
The units consist of one share and one half-share warrant. The whole warrants are exercisable at C$12.00 each for two years.
The deal is being sold through a syndicate of underwriters.
The private placement is expected to close on Feb. 23.
Proceeds will be used for underground and surface exploration and development on the company's New Afton and Ajax copper-gold projects. The rest will be used for general corporate purposes and working capital.
Based in Vancouver, B.C., New Gold, formerly known as DRC Resources Corp., is a gold and diamond exploration company.
| Issuer: | New Gold Inc.
|
| Issue: | Units of one share and one half-share warrant
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| Amount: | C$50.4 million
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| Units: | 5.6 million
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| Price: | C$9.00
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| Warrants: | One half-share warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$12.00
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| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 23
|
| Stock symbol: | Toronto: NGD
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| Stock price: | C$9.05 at close Feb. 1
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