Mining
Monday, November 6th, 2023 5:50 pm EDT
Key Points
- New Found Gold Corp. has successfully closed a bought-deal public offering of 7,725,000 flow-through common shares at a price of $7.25 per flow-through share, resulting in aggregate gross proceeds of $56,006,250.
- The offering saw significant participation from existing shareholders, accounting for about 50% of the issued shares from the offering.
- The gross proceeds from the offering will be utilized for incurring eligible Canadian exploration expenses related to the company’s Queensway project in Newfoundland, Canada. All qualifying expenditures will be renounced in favor of the subscribers effective December 31, 2023. Following the offering, the company will have approximately $71.4 million in cash and marketable securities. New Found Gold Corp. is currently conducting a substantial drill program at the Queensway Project and is well-funded for this initiative.
New Found Gold Corp. has closed its previously announced bought-deal public offering of 7,725,000 flow-through common shares of the company, that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)), at a price of $7.25 per flow-through (FT) share for aggregate gross proceeds of $56,006,250.
The offering included significant participation by existing shareholders, representing approximately 50 per cent of the issued shares from the offering.
The offering was completed pursuant to an underwriting agreement dated Nov. 1, 2023, entered into among the company and a syndicate of underwriters led by BMO Capital Markets and Canaccord Genuity Corp., and including Paradigm Capital Inc., Laurentian Bank Securities Inc., National Bank Financial Inc., Desjardins Securities Inc., Eight Capital and Roth Canada Inc.
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 (as such terms are defined in the Income Tax Act (Canada)) related to the company’s Queensway project located in Newfoundland, Canada, on or before Dec. 31, 2024. All qualifying expenditures will be renounced in favour of the subscribers effective Dec. 31, 2023.
Following completion of the offering, the company will have approximately $71.4-million in cash and marketable securities.
The Flow-Through Shares were offered by way of a prospectus supplement in each of the Provinces and Territories of Canada (other than the Province of Quebec) and were also 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. Copies of the prospectus supplement and documents incorporated by reference therein are available electronically on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval+ (“SEDAR+”) (www.sedarplus.ca) and the SEC’s Electronic Data Gathering and Retrieval System (“EDGAR”) (www.sec.gov) under New Found’s issuer profile.
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.
We seek Safe Harbor.
