New Gold Rises as Much as 12.9% on Series of Financing Deals
Shares of New Gold (NYSEMKT: NGD) rose as much as 12.9% today after the company continued efforts to improve its balance sheet. Earlier this week, the gold miner announced the sale of the development-stage Blackwater mine to Artemis Gold for roughly $142 million in combined payouts. It will retain exposure to the mine through an 8% gold-streaming agreement.
Today, New Gold announced it will sell $400 million in senior debt notes due 2027. The proceeds will be combined with cash on hand to redeem outstanding debt notes due 2022. The transactions will effectively extend the maturity date for the company's debt by five years.
As of 3:03 p.m. EDT, the gold stock had settled to a 12.1% gain.
Source Fool.com
