07:21 AM EDT, 04/07/2025 (MT Newswires) -- New Gold ( NGD ) traded 1.3% lower at last look Monday in NYSE pre-market trading after the company agreed to pay $300 million to consolidate free cash flow interest in the New Afton mine in British Columbia.

The company said it signed an agreement with Ontario Teachers' Pension Plan to acquire the remaining 19.9% free cash flow interest in the mine that it does not already own.

"This transaction allows us to grow in an exceptional location with no diligence or integration risk, and with no equity dilution to our shareholders," said Patrick Godin, New Gold's ( NGD ) president and CEO.

New Gold ( NGD ) said it plans to fund the cash payment with cash on hand, borrowings from its existing revolving credit facility and a gold prepayment financing.

For 2025, New Gold ( NGD ) said it is committing $17 million towards exploration, focusing on the mine's K-Zone.

"Our goal is to maximize this free cash flow generation at the mine, while continuing our exploration program to extend mine life and create further value for our shareholders and stakeholders," Godin said.

The transaction is expected to close in early May.