New Found Gold Corp. (TSXV:NFG | NYSE-A: NFGC) (“
New
Found” or the “
Company”) has announced
today that it has entered into an agreement with BMO Capital
Markets, on behalf of itself and a syndicate of underwriters
(collectively, the “
Underwriters”) led by BMO
Capital Markets and Canaccord Genuity Corp., under which the
Underwriters have agreed to buy, on a bought deal
basis, 7,725,000 charity flow-through common shares of the
Company (the “
Charity Flow-Through Common Shares”)
at a price of C$7.25 per Charity Flow-Through Common Share for
aggregate gross proceeds of approximately C$56 million (the
“
Offering”). The Company has granted the
underwriters an option, exercisable at the offering price up to 30
days following the closing of the Offering, to purchase up to an
additional 15% of the Charity Flow-Through Common Shares issued in
connection with the Offering. Each Charity Flow-Through Common
Share will qualify as a "flow-through share" within the meaning of
subsection 66(15) of the Income Tax Act (Canada).
The Company intends to use gross proceeds
from the financing to continue its exploration and drilling efforts
at its Queensway Project.
The Charity Flow-Through Common Shares will be
offered by way of a prospectus supplement in all of the provinces
and territories of Canada, excluding Quebec. The Charity
Flow-Through Common Shares will also be 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. The Offering is
expected to close on or about November 6, 2023 and is subject to
the Company receiving all necessary regulatory approvals, including
the approval of the TSX Venture Exchange and the NYSE American.
Copies of the base shelf prospectus dated July
22, 2022 and prospectus supplement relating to the Offering, when
available, may be obtained upon request in Canada by contacting BMO
Nesbitt Burns Inc. (“BMO Capital Markets”), Brampton Distribution
Centre C/O The Data Group of Companies, 9195 Torbram Road,
Brampton, Ontario, L6S 6H2 by telephone at 905-791-3151 Ext 4312 or
by email at torbramwarehouse@datagroup.ca, and in the United States
by contacting BMO Capital Markets Corp., Attn: Equity Syndicate
Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, or
by telephone at (800) 414-3627 or by email at
bmoprospectus@bmo.com. Copies of the base shelf prospectus and
prospectus supplement, when available, can be found under the
Company’s profile on SEDAR+ at www.sedarplus.ca, and a copy of the
registration statement and the prospectus supplement can be found
on EDGAR at www.sec.gov.
This news release shall not constitute
an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of the Charity Flow-Through Common Shares in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of that jurisdiction.
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 500,000m drill
program at Queensway and is well funded for this program with cash
and marketable securities of approximately $29.5 million as of
October 2023.
Contact
To contact the Company, please visit the Company’s
website 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.
New Found Gold Corp.Per: “Collin Kettell”Collin Kettell, Chief
Executive OfficerEmail: ckettell@newfoundgold.caPhone: +1
(845) 535-1486
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the 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 exploration, drilling and
mineralization on the Company’s Queensway gold project in
Newfoundland and Labrador; the funding of the drilling program, the
closing of the Offering, the use of proceeds of the Offering, the
acceptance of the Offering by the TSX Venture Exchange and NYSE
American, the tax treatment of the Charity Flow Through Common
Shares, and the timing of the closing of the offering. 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”, “interpreted”,
“intends”, “estimates”, “projects”, “aims”, “suggests”, “indicate”,
“often”, “target”, “future”, “likely”, “pending”, “potential”,
“goal”, “objective”, “prospective”, “possibly”, “preliminary”, 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 TSX Venture Exchange 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 Company
receiving all approvals necessary for the completion of the
Offering and the timing thereof; the tax treatment of the Charity
Flow-Through Common Shares, risks associated with possible
accidents and other risks associated with mineral exploration
operations, the risk that the Company will encounter unanticipated
geological factors, risks associated with the interpretation of
assay results and the drilling program, 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 at SEDAR+
(www.sedarplus.ca), the Canadian Securities Administrators’
national system that all market participants use for filings and
disclosure 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.
New Found Gold (TSXV:NFG)
Historical Stock Chart
From Dec 2024 to Jan 2025
New Found Gold (TSXV:NFG)
Historical Stock Chart
From Jan 2024 to Jan 2025