BRIEF-New Gold provides Rainy River project update and further increases financial flexibility

Tue Oct 4, 2016 8:33am EDT
 
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Oct 4 (Reuters) - New Gold Inc

* New Gold has entered into additional gold price option contracts through mid-2017

* Has decided to defer start of development of Rainy River underground mine by approximately one year to second half of 2018

* New Gold provides Rainy River project update and further increases financial flexibility

* Increasing size of company's revolving credit facility by $100 million to $400 million

* Extending increase in facility's associated net debt to EBITDA covenant to end of 2017

* Sees 2016 guidance for all-in sustaining costs of $750 to $790 per ounce

* As Rainy River's development remains on schedule, New Gold continues to target first production from mine in mid-2017

* Initial underground development at Rainy River mine is estimated to cost approximately $100 million over a two-year development period

* Rainy River mine is expected to produce an average of 325,000 ounces of gold annually Source text for Eikon: Further company coverage: