Eric Sprott invests C$48 million in New Found Gold
(Kitco News) - New Found Gold (TSXV: NFG, NYSE: NFGC) announced Thursday that it has arranged a non-brokered private placement with Mr. Eric Sprott of 5 million common shares of New Found, at a price of C$9.60 per common share, for gross proceeds of C$48 million.
New Found said it intends to use the proceeds of the offering to fund exploration of New Found's 100% owned Queensway project and for working capital and general corporate purposes.
According to the company's statement, Eric Sprott currently beneficially owns 31,601,200 common shares of New Found. Upon closing of the Offering, Eric Sprott will beneficially own 36,601,200 common shares of New Found.
Founder and Executive Chairman Collin Kettell stated, "Mr. 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 post raise, as the company continues to explore for high-grade gold at its Queensway project."
New Found holds a 100% interest in the Queensway project, located 15 km west of Gander, Newfoundland, and just 18 km from Gander International Airport. The company is currently undertaking a 200,000m drill program at Queensway.