Canada’s New Gold has finalized an agreement to acquire the remaining 19.9% free cash flow interest in the New Afton copper-gold mine from the Ontario Teachers’ Pension Plan for $300 million. The transaction consolidates New Gold’s ownership of the mine, located 10 kilometers west of Kamloops, British Columbia, granting the company full control over one of Canada’s prominent gold and copper assets. This marks a significant milestone for New Gold in its operational strategy.
To finance the purchase, New Gold plans to utilize a combination of available cash reserves, borrowings from its existing credit facility, and a gold prepayment arrangement. Under this arrangement, the company will receive $100 million upfront by committing to deliver a fixed quantity of gold over 12 months. This financing strategy reflects innovative approaches to managing large-scale transactions in the mining sector.
This acquisition follows recent developments at the New Afton mine, where technical growth projects have extended its life to 2031. In February 2025, New Gold reported a 15% increase in copper reserves and a 13% increase in gold reserves compared to year-end 2024. These additional reserves, achieved without extra capital costs, are expected to support sustained operations and further exploration opportunities.
The transaction also terminates all existing agreements tied to Ontario Teachers’ interest in New Afton, including a clause allowing for a $20 million payment in the event of a change in control at New Gold before January 31, 2026. The deal is expected to close in early May, subject to customary conditions.
New Afton is an underground mine known for its copper-gold porphyry deposit located within British Columbia’s Intermontane belt. It has been a cornerstone asset for New Gold since its opening in 2012 and continues to demonstrate strong operational and resource growth potential.
