New Found Gold Corp. (“New Found” or the “Company”) is pleased to announce that it has closed its previously-announced “bought deal” public offering of 7,725,000 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 $7.25 per Flow-Through Share (the “Offering Price”) for aggregate gross proceeds of $56,006,250 (the “Offering”).
The Offering included significant participation by existing shareholders, representing approximately 50% of the issued shares from the Offering.
The Offering was completed pursuant to an underwriting agreement dated November 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)) (the “Qualifying Expenditures”) related to the Company’s Queensway Project located in Newfoundland, Canada on or before December 31, 2024. All Qualifying Expenditures will be renounced in favour of the subscribers effective December 31, 2023.
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Following completion of the Offering, the Company will have approximately $71.4M 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.
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.
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