New Found Closes $57.5 Million Bought Deal Financing, Led by Eric Sprott
New Found Gold Corp. (TSXV: NFG) has successfully closed a flow-through share offering, raising $57.5 million through the sale of 5,048,500 shares at $11.39 each. The offering was led by Canaccord Genuity Corp. and BMO Capital Markets, with significant participation from Eric Sprott, who acquired roughly 19.9% of the financing. Proceeds will fund exploration expenses related to the Queensway and Lucky Strike projects, while the company will maintain approximately $118 million in working capital post-offering.
- Raised $57.5 million from the flow-through share offering.
- Significant involvement from Eric Sprott to maintain his 19.9% stake.
- Strong financial position with $118 million in working capital post-offering.
- Funding directed towards exploration at the Queensway and Lucky Strike projects.
- None.
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Aug. 24, 2021 /PRNewswire/ - New Found Gold Corp. ("New Found" or the "Company") (TSXV: NFG) (OTC: NFGFF) is pleased to announce that it has closed its previously-announced offering of 5,048,500 flow-through common shares of the Company (the "Flow-Through Shares") that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) at a price of
The Offering was completed pursuant to an underwriting agreement dated August 19, 2021, entered into among the Company and a syndicate of underwriters led by Canaccord Genuity Corp. and BMO Capital Markets and including CIBC World Markets Inc., Desjardins Securities Inc. and Clarus Securities Inc. (collectively, the "Underwriters"). Mr. Eric Sprott participated for roughly
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) (the "Qualifying Expenditures") related to the Company's Queensway Project located in Newfoundland, Canada and on the Company's Lucky Strike Project located in Ontario, Canada on or before December 31, 2022. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2021.
The Company will have approximately
The Flow-Through Shares were offered by way of a prospectus supplement in each of the Provinces of Canada (other than the Province of Quebec) and were also offered by way of private placement in the United States. Copies of the prospectus supplement and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under New Found's issuer profile.
The securities to be offered pursuant to the Offering have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About New Found Gold Corp.
New Found holds a
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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 exploration and drilling on the Company's Queensway gold project in Newfoundland; interpretation of results of the drilling program and funding of the drilling program and the timing related thereto; the use of proceeds of the Offering; tax treatment of the Flow-Through Shares; and the timing of the renunciation of the Qualifying Expenditures. 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," "target," "suggestive," "probability," "appear," "pursuit," "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 with 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 Annual Information Form and Management's discussion and Analysis, 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
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