Mr. Craig Roberts reports
NEW FOUND GOLD CLOSES $15 MILLION FLOW-THROUGH FINANCING AT $5.25/SHARE
New Found Gold Corp. has completed its previously announced, non-brokered private placement of 2,857,000 common shares of the company that qualify as flow-through shares for the purposes of the Income Tax Act (Canada) at a price of $5.25 per FT share for gross proceeds to New Found of $14,999,250. The FT shares have a hold period of four months and one day from closing, expiring on Aug. 9, 2021. On closing, a cash finder's fee equal to 3.5 per cent of the gross proceeds of the financing was paid to Clarus Securities Inc. Eric Sprott purchased 2,857,000 shares as a result of this financing, and following closing, he now holds approximately 18.4 per cent of the issued shares of the company.
The gross proceeds from the issuance of the FT shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT shares with an effective date of no later than Dec. 31, 2021, in an aggregate amount not less than the gross proceeds raised from the issue of the FT shares. If the qualifying expenditures are reduced by the Canada Revenue Agency or the company fails to renounce qualifying expenditures in an amount equal to the gross proceeds, the company will indemnify each initial purchaser of FT shares for any additional taxes payable.
About New Found Gold Corp.
New Found Gold holds a 100-per-cent interest in the Queensway project, located 15 kilometres west of Gander, Nfld., and just 18 kilometres from Gander International Airport. The project is intersected by the Trans-Canada Highway and has: logging roads crosscutting the project; high-voltage electric power lines running through the project area; and easy access to a highly skilled work force. The company is currently undertaking a 200,000-metre drill program at Queensway utilizing eight drills. Following the closing of the financing, the company has approximately $79-million in working capital.
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