Image Credit: New Gold

By James Peters

New Afton Mine

Ontario Teachers’ fund invests $300 million in New Afton mine near Kamloops

Feb 25, 2020 | 10:50 AM

KAMLOOPS — New Gold has announced a major cash infusion into the New Afton mine near Kamloops from one of Canada’s leading — and most recognizable investors.

According to a news release from New Gold, the Ontario Teachers’ Pension Plan (OTPP) has acquired a 46 per cent “free cash flow” interest in the New Afton mine, for a price of $300 million.

OTPP has nearly $200 billion in assets around the world, including several airports in Europe and major commercial real estate properties in Toronto and Ottawa.

From 2003 to 2012, OTPP was the principal owner of Maple Leafs Sports and Entertainment, who operates the Toronto Maple Leafs and Toronto Raptors.

Four years after the New Afton transaction closes, OTPP will have the option to convert their cash flow interest into a partnership interest, with New Gold retaining 54 per cent ownership of the copper-gold mine.

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New Gold retains the option to buy back 100 per cent interest after that time.

New Gold President and CEO Renaud Adams touts the deal as giving it increased financial flexibility as it develops the C-zone, which is expected to extend the mine’s life to 2030.

Read the full news release.