Newmarket GoldInc. said March 30 that holders converted some US$34.3 million of thecompany's US$34.5 million 8% convertible unsecured debentures due April 30, 2018,into common shares prior to the redemption date.

The company will issue 10,287 shares to complete the redemption,and pay cash for the accrued and unpaid interest up to, but excluding, the redemptiondate.

Following the redemption, the company will have about 174.7 millionshares issued and outstanding.

Company President and CEO Douglas Forster said, "With theconversion and full redemption of all outstanding Debentures, Newmarket's currentsolid financial position will be further strengthened as the Company will be essentiallydebt free with no additional future Debenture interest payments."

In January, the company said that it expects to produce between 205,000 ounces and 220,000 ouncesof gold in 2016 at operating cash costs per ounce sold in the range of US$700 toUS$750 per ounce.