New Gold announces $300-million credit arrangement

NEWS/ BUSINESS — New Gold Inc. has obtained a $300-million revolving credit loan with a syndicate of banks led by the Bank of Nova Scotia and RBC Capital Markets.

The loan, called a revolving credit facility — which allows the borrower to withdraw from it, repay and withdraw again if it wishes — replaces a previous $150-million revolving credit facility, the company said today.

“The facility further enhances our already strong financial position,” said Brian Penny, the executive vice president and chief financial officer of New Gold, which operates the New Afton underground gold-copper mine in Kamloops.

He said the new loan “provides us with additional flexibility as we move forward.” He said there are no current plans to draw upon the credit.

The syndicate of banks includes the Bank of Nova Scotia, Royal Bank of Canada, Canadian Imperial Bank of Commerce, JP Morgan Chase Bank, N.A., the Toronto Dominion Bank, Bank of America Merrill Lynch, Bank of Montreal and Export Development Canada.