NGD - New Gold reaches deal to sell Blackwater Project gold stream for $300M in upfront cash

New Gold (NYSE:NGD) is trading 1.39% higher after-hours on reaching a deal with Wheaton Precious Metals to sell its existing gold stream held on the Blackwater Project in British Columbia, Canada. New Gold will receive US$300M in upfront cash consideration from Wheaton upon closing of the transaction. The gold stream entitles Wheaton to 8% of the gold produced from Blackwater. The entitlement will reduce to 4% of gold production once ~280,000 ounces of gold have been delivered to Wheaton. The transaction is expected to close by the end of 2021. Gold delivered under the stream is subject to an ongoing cash price equal to 35% of the spot gold price, payable to Artemis Gold. The project is wholly-owned by Artemis, with New Gold having retained the gold stream as partial consideration for the divestiture of Blackwater to Artemis on August 21, 2020.

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New Gold reaches deal to sell Blackwater Project gold stream for $300M in upfront cash