New Found Closes $50 Million Bought Deal Financing, Led by Eric Sprott
December 14 2022 - 7:35AM
Business Wire
New Found Gold Corp. (“New Found” or the
“Company”) (TSXV: NFG, NYSE-A: NFGC) is pleased to announce
that it has closed its previously-announced “bought deal” public
offering of 6,250,000 flow-through common shares of the Company
(the “Flow-Through Shares”) that will qualify as
“flow-through shares” (within the meaning of subsection 66(15) of
the Income Tax Act (Canada)) at a price of $8.00 per Flow-Through
Share (the “Offering Price”) for aggregate gross proceeds of
$50,000,000 (the “Offering”).
The Offering was completed pursuant to an underwriting agreement
dated December 9, 2022, entered into among the Company and a
syndicate of underwriters led by BMO Capital Markets and including
Paradigm Capital Inc., Canaccord Genuity Corp., Laurentian Bank
Securities Inc., National Bank Financial Inc. and Roth Canada, Inc.
(collectively, the “Underwriters”). Mr. Eric Sprott
participated in the Offering to maintain his 19.9% interest in the
Company.
The gross proceeds of the Offering will be used by the Company
to incur eligible “Canadian exploration expenses” that will qualify
as “flow-through mining expenditures” (as such terms are defined in
the Income Tax Act (Canada)) (the “Qualifying Expenditures”)
related to the Company’s Queensway Project located in Newfoundland,
Canada on or before December 31, 2023. All Qualifying Expenditures
will be renounced in favour of the subscribers effective December
31, 2022.
Following completion of the Offering, the Company will have
approximately $93.5M in cash and marketable securities.
The Flow-Through Shares were offered by way of a prospectus
supplement in each of the Provinces and Territories of Canada,
(other than the Province of Quebec), and were also offered by way
of a U.S. prospectus supplement forming part of the Company's
registration statement on Form F-10 in the United States. Copies of
the prospectus supplement and documents incorporated by reference
therein are available electronically on SEDAR (www.sedar.com) and
EDGAR (www.sec.gov) under New Found’s issuer profile.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About New Found Gold Corp.
New Found holds a 100% interest in the Queensway Project,
located 15km west of Gander, Newfoundland and Labrador, and just
18km 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 workforce. The
Company is currently undertaking a 400,000m drill program at
Queensway, now approximately 79% complete.
Please see the Company’s website at www.newfoundgold.ca and the
Company’s SEDAR profile at www.sedar.com.
Contact
To contact the Company, please visit the Company’s website,
www.newfoundgold.ca and make your request through our investor
inquiry form. Our management has a pledge to be in touch with any
investor inquiries within 24 hours. Information on the Company’s
website does not form a part of this press release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward Looking Information
This press release contains certain "forward-looking statements"
within the meaning of Canadian and U.S. securities legislation
(including the Private Securities Litigation Reform Act of 1995),
including statements relating to the use of proceeds of the
Offering, the final acceptance of the Offering by the TSX Venture
Exchange and NYSE American, the tax treatment of the Charity
Flow-Through Common Shares. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements
are statements that are not historical facts; they are generally,
but not always, identified by the words "expects," "plans,"
"anticipates," "believes," "intends," "estimates," "projects,"
"aims," "suggests," "potential," "goal," "objective,"
"prospective," "possibly," and similar expressions, or that events
or conditions "will," "would," "may," "can," "could" or "should"
occur, or are those statements, which, by their nature, refer to
future events. The Company cautions that forward-looking statements
are based on the beliefs, estimates and opinions of the Company's
management on the date the statements are made, and they involve a
number of risks and uncertainties. Consequently, there can be no
assurances that such statements will prove to be accurate and
actual results and future events could differ materially from those
anticipated in such statements. Except to the extent required by
applicable securities laws and the policies of the TSXV or the NYSE
American, the Company undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change. Factors that could cause
future results to differ materially from those anticipated in these
forward-looking statements include risks related to: the tax
treatment of the Charity Flow-Through Common Shares, the
possibility that the Company may not be able to secure permitting
and other governmental clearances necessary to carry out the
Company's exploration plans, the risk that the Company will not be
able to raise sufficient funds to carry out its business plans, and
the risk of political uncertainties and regulatory or legal changes
that might interfere with the Company's business and prospects. The
reader is urged to refer to the Company's Annual Information Form
and Management's Discussion and Analysis, publicly available
through the Canadian Securities Administrators' System for
Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com
or through the SEC's Electronic Data Gathering and Retrieval System
(EDGAR) at www.sec.gov for a more complete discussion of such risk
factors and their potential effects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221213006127/en/
New Found Gold Corp. Per: "Collin Kettell" Collin
Kettell, Chief Executive Officer Email: ckettell@newfoundgold.ca
Phone: +1 (845) 535-1486
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