New Found Gold Corp., a Canadian mining company, has successfully raised $56 million for the expansion of its Queensway Project. The company recently entered into an agreement with BMO Capital Markets and a syndicate of underwriters, led by BMO Capital Markets and Canaccord Genuity Corp., to purchase 7,725,000 charity flow-through common shares of the company on a bought deal basis. The shares were priced at C$7.25 each, resulting in aggregate gross proceeds of approximately C$56 million.
The funds raised through this offering will be used to further the company’s exploration and drilling efforts at the Queensway Project. New Found Gold Corp. holds a 100% interest in the project, which is situated 15km west of Gander, Newfoundland and Labrador, and only 18km away from Gander International Airport. The project benefits from its strategic location, intersected by the Trans-Canada Highway, with logging roads and high voltage electric power lines running through it. The company also has easy access to a highly skilled workforce.
The Queensway Project is currently undergoing a substantial 500,000-meter drill program. With the additional funding, New Found Gold Corp. is well-positioned to carry out this program, as it already has approximately $29.5 million in cash and marketable securities as of October 2023.
The offering of the charity flow-through common shares will be available through a prospectus supplement in all Canadian provinces and territories except Quebec. In the United States, the shares will be offered through a U.S. prospectus supplement forming part of the company’s registration statement on Form F-10. The closing of the offering is expected to take place on or around November 6, 2023, subject to regulatory approvals.
Investors can obtain copies of the base shelf prospectus and prospectus supplement by contacting BMO Capital Markets in Canada or the United States. The documents will also be available on the Company’s profile on SEDAR+ and EDGAR.
It is worth noting that this news release does not constitute an offer to sell or a solicitation to buy the charity flow-through common shares in any jurisdiction where such actions would be unlawful without proper registration or qualification.
New Found Gold Corp. aims to continue its successful exploration and drilling activities at the Queensway Project with the significant funds raised. The company’s commitment to growth and development in the mining sector positions it as a key player in Canada’s resources industry. With its strategic location and well-funded drilling program, New Found Gold Corp. is set to make significant advancements in its mining operations.
Contact details for the company can be found on their website, with a dedicated investor inquiry form available. The management promises to be responsive to any investor inquiries within 24 hours.
