BRITISH COLUMBIA - Vancouver-based NEW GOLD INC. announced on Feb. 1 that it has raised $50.4 million in a bought deal financing for exploration and development of its project at the former Afton copper mine near Kamloops. The company will issue 5.6 million units (one common share and one-half share purchase warrant) at $9 each to a syndicate of Canadian underwriters.
The Afton project is in the feasibility study stage. The earlier scoping study assumed an underground mine using block caving methods. Total mineralization in the deposit was estimated to contain 1.3 billion lb of copper and 1.4 million oz of gold. New Gold reported infill drilling results in January that included up to 1.32% Cu and 1.08 g/t Au over 218 metres and 1.81% Cu and 1.40 g/t Au over 102 metres. Detailed resource numbers and drilling results are posted at www.NewGoldInc.com.
The offering is scheduled to close on or about Feb. 23, 2006, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.