June 28, 2007
New Gold Inc. (TSX:NGD, AMEX:NGD), a natural resources exploration and development company with copper and gold interests in British Columbia, completed (i) a fully underwritten offering of 10,700,000 common shares and 2,055,000 common shares which qualify as flow-through shares for the purposes of the Income Tax Act (Canada); and (ii) a best efforts agency offering of a principal amount of $55 million convertible debentures and 220,000 units of the Corporation, each unit consisting of 100 common share purchase warrants of New Gold and a $1,000 principal amount unsecured note bearing interest at a rate of 10% per annum with a 10 year term. New Gold raised an aggregate of $375,286,500 pursuant to the offering and will use the proceeds of the offering to fund the preproduction development required to bring its New Afton Project into commercial production and to commence the expansion phase of the mine's development. The offering was completed by a syndicate of underwriters led by GMP Securities L.P. and including BMO Nesbitt Burns Inc., Orion Securities Inc., Jennings Capital Inc. and Wellington West Capital Markets Inc.
Wildeboer Dellelce LLP represented the Underwriters with a team that included Derek Sigel, Sanjeev Patel, Alexandra Vazquez (corporate/securities), Kevin Fritz and George Nehme (tax).