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Ontario Teachers’ reaches agreement to sell its remaining stake in future free cash flow from New Gold’s New Afton Mine

 · 3 min read

Toronto, ON, April 7, 2025 – Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) has reached an agreement to sell its remaining 19.9% free cash flow interest in the New Afton Mine (“New Afton”) to New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE American: NGD) for US$300 million. New Afton is a high-quality gold and copper mine located near Kamloops, British Columbia.

Ontario Teachers’ announced a strategic partnership with New Gold in 2020, focused on the company’s New Afton mine. At that time, Ontario Teachers’ agreed to acquire a 46.0% free cash flow interest in New Afton for upfront cash proceeds of US$300 million. In 2024, Ontario Teachers’ free cash flow interest in New Afton was reduced from 46.0% to 19.9% in exchange for a cash payment of US$255 million from New Gold. Upon closing of this latest transaction, Ontario Teachers’ will have no further financial interest in New Afton.

Christopher Metrakos, Senior Managing Director, Infrastructure & Natural Resources, Ontario Teachers’ Pension Plan said:

“We are pleased with the favourable outcome of our strategic partnership with New Gold, a leading Canadian mining company. This partnership has yielded positive returns for Ontario Teachers' while providing significant support and financial flexibility to the Company throughout the investment period, enabling them to achieve commercial production at New Afton’s C-Zone ahead of schedule. We look forward to seeing continued success for New Gold and wish them well.”

Ontario Teachers' Natural Resources group operates under a global mandate to seek investments in energy, metals, timberland, agriculture and aquaculture, and natural climate solutions. These investments provide the fund with commodity-linked cash flows, inflation protection, and diversification.

About Ontario Teachers’ 

Ontario Teachers' Pension Plan Board (Ontario Teachers') is a global investor with net assets of $266.3 billion as at December 31, 2024. Ontario Teachers’ is a fully funded defined benefit pension plan, and it invests in a broad array of asset classes to deliver retirement security for 343,000 working members and pensioners. For more information, visit otpp.com and follow us on LinkedIn. 

 

Contact details

Ontario Teachers’
Dan Madge/Sheena Kasparian
Email: media@otpp.com