New Gold Announces Sale of Mesquite Mine

TORONTO, ON - New Gold Inc. has entered into a definitive share purchase agreement with Equinox Gold Corp. to sell its Mesquite Mine located in California. Under the terms of the Agreement, New Gold will receive $158 million in cash upon completion of the transaction. 

"Mesquite has generated significant value for New Gold, averaging more than 135,000 ounces of gold per year over the last 10 years since Western Goldfields, a predecessor to New Gold, brought the mine back into production," stated Renaud Adams, President and Chief Executive Officer of New Gold. "On behalf of New Gold, I would like to thank the Mesquite team for their tremendous contributions to New Gold's portfolio of assets, and we wish them continued success as they join the Equinox team."

“The announcement allows New Gold to immediately crystallize several years' worth of future free cash flow as part of our strategy to prudently manage our balance sheet, providing the Company with the financial flexibility to focus on our core assets," said Adams.