New Found Gold Secures C$56 Million Financing to Boost Growth
New Financing Heights for New Found Gold
New Found Gold Corp. (“New Found Gold” or the “Company”) is thrilled to announce a significant enhancement to its previously disclosed bought deal financing, which is now raised to an impressive C$56 million. This strategic move reflects the high demand from investors, allowing the Company to add a new hard dollar tranche of 4,370,000 common shares at a price of C$1.63 per share, generating approximately C$7 million in proceeds. The existing charity flow-through shares tranche remains unchanged, comprising 21,400,000 shares priced at C$2.29, contributing around C$49 million.
Understanding the Offering
Details of the Financing
This financing effort, collectively referred to as the “Offering,” consists of the new hard dollar tranche and the charity flow-through shares. The Underwriters have been granted an option to purchase an additional 15% of the Charity Flow-Through Common Shares within 30 days post-closing of the initial tranche.
Strategic Goals of the Financing
The funds raised will be earmarked for eligible “Canadian exploration expenses,” categorizing as “flow-through mining expenditures.” These funds aim to significantly advance the Queensway Gold Project, which has shown exceptional potential for gold discovery.
Private Placement Plans
Following this Offering, New Found Gold also plans to engage in a non-brokered private placement of up to 12,269,939 common shares, again at C$1.63 per share. This private placement targets gross proceeds of around C$20 million and will contribute to advancing the Queensway project along with general operational funding.
Eric Sprott's Continued Support
Investment by Key Shareholder
Prominent investor Eric Sprott has expressed his intention to participate in the Offering and the Private Placement to maintain his substantial shareholding in the Company. His involvement cemented his position as a pivotal “Control Person,” reinforcing the trust and belief in New Found Gold’s vision.
Advancing the Queensway Gold Project
Mining and Exploration Focus
The proceeds from both the Offering and the private placement will primarily fund the Queensway Gold Project, a venture that holds significant promise for gold exploration. Recent drilling results indicate an expansion of known gold zones and underscore the district-scale potential of this extensive project.
Commitment to Growth
With a solid management team and a solid investor base, New Found Gold stands poised for growth. The focus remains on bringing value to shareholders while advancing meaningful exploration projects that promise lucrative returns.
Final Thoughts
New Found Gold is dedicated to harnessing the funds from this financing to scale its operations at the Queensway Gold Project and propel the Company into an exciting new phase of exploration and development. With strong support and a proactive strategy, the future looks bright for New Found Gold Corp.
Frequently Asked Questions
What is the amount raised in New Found Gold's recent financing?
The recent financing raised a total of C$56 million, increased from the initial amount due to strong investor demand.
What will the funds be used for?
The proceeds will be used for Canadian exploration expenses related to the Queensway Gold Project and for general corporate purposes.
Who is Eric Sprott?
Eric Sprott is a prominent investor who has been a strong supporter of New Found Gold and intends to maintain his shareholding through participation in the financing.
What is the Queensway Gold Project?
The Queensway Gold Project is a key venture for New Found Gold, located in Newfoundland and Labrador, known for its substantial gold exploration potential.
How can investors get more information about the company?
Investors can visit New Found Gold's official website or contact their investor relations team for further inquiries.
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