Shareholders Overwhelmingly Support Plan of Arrangement with Coeur Mining
Shareholders rubber-stamp Coeur merger as New Gold exits 2025 on a record-breaking operational high.
The most recent news release (January 27, 2026) confirms that New Gold Inc. (NGD) shareholders have overwhelmingly approved the Plan of Arrangement with Coeur Mining, Inc. (CDE). Approximately 99.22% of votes cast were in favor of the transaction. Under the terms, New Gold shareholders will receive 0.4959 shares of Coeur for each New Gold share held. The transaction is expected to close in the first half of 2026, subject to final court approval from the Supreme Court of British Columbia and various regulatory hurdles.
This news is highly material as it signals the end of New Gold as a standalone entity. - Validation of Strategy: The 99% approval rating reflects shareholder satisfaction with the 16% premium offered at the November announcement and the overall turnaround orchestrated by management. - Financial Strength at Exit: The achievement of 2025 guidance (353,772 oz Gold, 50.1M lbs Copper) and the generation of $532 million in free cash flow (FCF) for the full year 2025 provided the leverage needed to negotiate the $7 billion equity value. - Project Progress: New Afton’s C-Zone construction is 79% complete, and Rainy River achieved record FCF of $183 million in Q3 2025. These improvements moved NGD from a high-risk debt-laden operator to a cash-flow-positive growth engine for the combined entity. - Shareholder Dilution/Positioning: NGD shareholders will own approximately 38% of the new company. While this provides exposure to Coeur’s five other mines, it also means NGD's specific high-margin performance will be diluted within a much larger, more diverse portfolio.
New Gold is a Canadian-focused intermediate producer. - New Afton (BC): An underground block cave mine. NGD consolidated 100% ownership in April 2025 by buying out Ontario Teachers' Pension Plan's 19.9% interest. The C-Zone is the primary growth driver, extending mine life to 2031. - Rainy River (Ontario): An open-pit and underground mine. It transitioned to a major FCF generator in 2025 due to higher grades in Phase 4 and the ramp-up of the underground Main zone.