Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, July 24, 2015

Article Excerpt

NEW GOLD INC., $2.85, symbol NGD on Toronto, recently started building a mine at its 100%-owned Rainy River project in Ontario. It aims to start production in mid-2017 at an average of 325,000 ounces of gold annually over nine years (along with silver as a by-product). The company has now entered into a $175-million streaming agreement with Royal Gold (Nasdaq symbol RGLD) to help fund Rainy River (all figures except share price in U.S. dollars). Royal will pay $100 million at the start of the deal and the remaining $75 million when the mine is 60% complete (projected at mid-2016). In exchange, New Gold will give Royal 6.5% of the project’s gold production, up to a total of 230,000 ounces, and 3.25% of its gold output thereafter. In addition, Royal will get 60% of the project’s silver production, up to a total of 3.1 million ounces, and 30% of its silver output thereafter. Royal will also pay 25% of the average spot gold…