In May 2025, New Gold Inc., a Canadian-focused intermediate mining company, completed a US$300-million acquisition of the remaining 19.9 percent free cash flow royalty interest in its New Afton Mine from Ontario Teachers’ Pension Plan (OTPP), consolidating New Gold’s ownership of the free cash flow interest in New Afton to 100 percent. As part of the transaction, all existing agreements with respect to Ontario Teachers’ free cash flow interest in New Afton were terminated.
This strategic acquisition followed a prior transaction undertaken in 2024 pursuant to which New Gold reduced the OTPP free cash flow interest in New Afton from 46 percent to 19.9 percent in exchange for a cash payment of $255 million.
These transactions allowed New Gold to fully consolidate its economic interest in one of its core producing assets, enhancing the company’s operational flexibility and long-term value creation for shareholders. They also underscore New Gold’s commitment to disciplined portfolio management and its vision to be the most valued intermediate gold and copper producer through profitable and responsible mining.
Davies Ward Phillips & Vineberg LLP represented New Gold with a team that included Richard Fridman, Aaron Atkinson and Yevgeniya Huggins (Private M&A); Jim Dinning (Competition); and Christopher Anderson (Tax).
Lawson Lundell LLP represented New Gold in British Columbia.
Stikeman Elliott LLP acted as counsel to Ontario Teachers’ Pension Plan with a team that included Jeffrey Singer, Steve Bennett and Taisa Morsky (Corporate/Mining); Michael Kilby (Competition) and Gordon Masson (Tax).