New Found Announces Grant of Stock Options

Rhea-AI Summary

New Found Gold Corp. (TSXV: NFG, OTC: NFGFF) has granted stock options to a director to acquire 200,000 common shares at an exercise price of $8.62, valid for five years until May 17, 2026. This move follows the company's 10% rolling incentive stock option plan and requires shareholder approval at the next annual meeting. New Found Gold holds a 100% interest in the Queensway Project in Newfoundland and is undertaking a 200,000m drill program supported by a working capital of approximately $74 million.

Positive

• Grant of stock options aligns director's interests with shareholders.
• Well-funded with approximately $74 million in working capital for drilling program.
• Active drilling operations with plans to increase the rig count to ten by end of Q2 2021.

Negative

• Stock option grant is subject to disinterested shareholder approval, which may not be guaranteed.
• Future drilling success is uncertain, influenced by geological risks and permitting challenges.

VANCOUVER, BC, May 17, 2021 /PRNewswire/ - New Found Gold Corp. ("New Found" or the "Company") (TSXV: NFG) (OTC: NFGFF) announces it has granted incentive stock options to a director of the Company to acquire 200,000 common shares in the capital of the Company at an exercise price of $8.62 (the "Options") in accordance with the Company's 10% rolling incentive stock option plan. The Options are exercisable for a five-year term expiring May 17, 2026.  The grant of the Options is subject to disinterested shareholder approval and approval of the TSX Venture Exchange. The Company intends to seek such shareholder approval at its next annual meeting of shareholders.

About New Found Gold Corp.

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 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 200,000m drill program at Queensway.  Seven rigs are currently in operation at Queensway with the drill count planned to increase to ten rigs by the end of Q2, 2021. With a current working capital balance of approximately $74 million, New Found is well funded for this program. 

Please see the Company's website at www.newfoundgold.ca and the Company's SEDAR profile at www.sedar.com.

Contact

To contact the Company, please visit the Company's website, www.newfoundgold.ca and make your request through our investor inquiry form. Our management has a pledge to be in touch with any investor inquiries within 24 hours.

New Found Gold Corp.
Per: "Craig Roberts"
Craig Roberts, P.Eng., Chief Executive Officer
Email: croberts@newfoundgold.ca 
Phone: (604) 562 9664

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement Cautions

This press release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to further the exploration and drilling on the Company's Queensway gold project in Newfoundland and relating to shareholder and regulatory approval of the granting of stock options. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include risks associated possible accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company's exploration plans, the risk that the Company will not be able to raise sufficient funds to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company's business and prospects. The reader is urged to refer to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com for a more complete discussion of such risk factors and their potential effects.

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SOURCE New Found Gold Corp.

FAQ

What is the stock option grant by New Found Gold Corp. for NFGFF?

New Found Gold Corp. has granted stock options to acquire 200,000 common shares at an exercise price of $8.62, expiring on May 17, 2026.

When will New Found Gold Corp. seek shareholder approval for the stock options?

The company intends to seek shareholder approval at its next annual meeting of shareholders.

How much working capital does New Found Gold Corp. have for its projects?

New Found Gold Corp. has approximately $74 million in working capital for its drilling program.

What is the drilling program at the Queensway Project?

The Queensway Project has a 200,000m drill program underway, with an increase in drilling rigs planned.

What is the exercise price for the stock options granted by New Found Gold Corp.?

The exercise price for the stock options is $8.62.