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New Found Gold closes C$50M bought deal financing, led by Eric Sprott

Kitco Media
By Vladimir Basov
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(Kitco News) - New Found Gold (TSXV: NFG, NYSE-A: NFGC) today announced that it has closed its previously-announced "bought deal" public offering for aggregate gross proceeds of C$50,000,000.

New Found said that 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, adding that Mr. Eric Sprott participated in the offering to maintain his 19.9% interest in the company.

According to a press release, 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" related to the company's Queensway project located in Newfoundland, Canada on or before December 31, 2023.

New Found Gold pointed out that following completion of the offering, the company will have approximately $93.5M in cash and marketable securities

New Found Gold holds a 100% interest in the Queensway gold project, located 15km west of Gander, Newfoundland and Labrador, and just 18km from Gander International Airport. The company is currently undertaking a 400,000m drill program at Queensway, now approximately 79% complete.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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