New Gold Inc. (TSX:NGD) will issue up to $55 million of debentures and $220 million of units to finance pre-production development of its cooper-gold project near Kamloops, B.C.
The offering is led by GMP Securities LP and will include a syndicate of underwriters including BMP Nesbitt Burns Inc., Orion Securities Inc., Jennings Capital Inc. and Wellington West Capital Markets Inc.
The debentures will have a seven-year term, a 5% coupon and a conversion price of $9.35 per share. Series D New Gold units being offered will consist of $1,000 notes with a 10% coupon and a 10-year term. Each unit will also have 100 common share purchase warrants exercisable for one common share of New Gold at a price of $15 per share.
The offering is expected to close around June 28. New Gold's share price range during the past week: between $7.40 and $7.50; 52-week high: $10.50; 52-week low: $7.29.