21:17:06 EST Fri 02 Dec 2022
Enter Symbol
or Name

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New Found Gold Corp
Symbol NFG
Shares Issued 158,717,028
Close 2021-10-20 C$ 9.67
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New Found arranges $48-million placement with Sprott

2021-10-21 06:06 ET - News Release

Mr. Collin Kettell reports


New Found Gold Corp. has arranged a non-brokered private placement with Eric Sprott of five million common shares of New Found, at a price of $9.60 per common share, for gross proceeds of $48-million.

New Found intends to use the proceeds of the offering to finance exploration of New Found's 100-per-cent-owned Queensway project and for working capital and general corporate purposes. The offering is subject to the satisfaction of customary closing conditions, including the approval of the TSX Venture Exchange and approval by the shareholders of the company if required by the TSX-V.

Collin Kettell, founder and executive chairman of New Found Gold, stated: "Eric Sprott has been a major supporter of New Found Gold since prior to the company's IPO. New Found Gold finds itself in an enviable position, well funded with approximately $150-million in working capital postraise, as the company continues to explore for high-grade gold at its Queensway project. With a district-size land package and our success to date, we believe there is great potential for this success to continue to build as we advance our program. On behalf of management and the board of directors, I would like to thank Eric for his continued support."

Mr. Sprott currently beneficially owns 31,601,200 common shares of New Found. Upon closing of the offering, Mr. Sprott will beneficially own 36,601,200 common shares of New Found.

In the event the TSX-V requires shareholder approval of the offering, the company will call a special meeting of its shareholders. The offering is expected to close shortly after all necessary approvals are obtained.

Any securities issued pursuant to the offering will be subject to a hold period under applicable Canadian securities laws, which will expire four months plus one day from the date of closing of the offering. A 1-per-cent finder's fee is payable in connection with the offering.

About New Found Gold Corp.

New Found 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. With a current working capital balance of approximately $105-million, New Found is well financed for this program.

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