New Gold (NGD) said Monday it has agreed to acquire the remaining 19.9% free cash flow interest in Canada's New Afton Mine from the Ontario Teachers' Pension Plan for $300 million in cash.

The acquisition will bring New Gold's interest in New Afton to 100%, the company said.

New Gold said it plans to fund the transaction with cash on hand, loans from its revolving credit facility, and $100 million in exchange for a set amount of gold to be provided over 12 months.

The transaction is expected to close at the beginning of May, the company said.