New Found Gold and Maritime Join Forces to Form a Major Gold Production Entity in Canada

New Found Gold and Maritime Resources to Merge

Overview of the Agreement
In a significant development for the Canadian gold mining sector, New Found Gold Corp. (TSXV: NFG) and Maritime Resources Corp. (TSXV: MAE) have announced a definitive agreement for a merger that is poised to create an emerging gold production powerhouse in a tier 1 jurisdiction. The arrangement enables New Found Gold to acquire all outstanding shares of Maritime that it does not already control, facilitating the transition from exploration to production.

Strategic Benefits of the Merger
This merger will not only combine two substantial gold projects - New Found Gold's Queensway Gold Project and Maritime's Hammerdown Gold Project - but will also create substantial operational synergies due to their proximity in Newfoundland, Canada. New Found Gold has previously issued a favorable preliminary economic assessment (PEA) for its Queensway project and plans to initiate production by 2027. The Hammerdown project, located approximately 180 kilometers northwest of Queensway, is anticipated to reach full production in early 2026, making the collaboration strategically timed to maximize cash flows and operational efficiencies.

Keith Boyle, CEO of New Found Gold, emphasized, “The merger allows us to fast-track our transition from mere exploration to an established gold production entity. We’re not just merging resources, but we’re also ensuring a path to cash flow.” This statement underscores the ambitious goals laid out by both firms, aiming for steady production progression.

Details of the Transaction
Under the terms of the agreement, shareholders of Maritime will receive 0.75 shares of New Found Gold for every Maritime share owned, which represents a 32% premium based on the last trading day before the announcement. This acquisition is valued at approximately C$292 million on a fully diluted basis. Post-closing, current shareholders will own approximately 69% and 31% of the combined entity, enhancing shareholder value through shared growth prospects.

Both parties are preparing for a joint conference call and webcast to unpack the deal, scheduled for September 5, 2025. This engagement is designed to inform investors and stakeholders about the expected benefits and operational synergies from this strategic alignment.

Exploration and Production Potential
With the combination of these projects, New Found Gold and Maritime illustrate the potential of exploration assets evolving into significant gold production capabilities. The Hammerdown project is recognized for its high-grade resources and is expected to yield around 50,000 ounces of gold annually, contributing to the financial health of the combined company. Meanwhile, Queensway offers an impressive infrastructure and an extensive mineralization program aimed at realizing its production targets.

The production plans are ambitious, with plans to produce gold at a reduced cost while maximizing revenue during favorable market conditions. The synergy between Hammerdown's production capabilities, which will help fund Queensway’s development, is seen as a key driver of this merger’s success.

Conclusion
As New Found Gold and Maritime Resources come together, the prospect of them emerging as a formidable force in the Canadian gold mining landscape is resting not only on their combined asset base but also on their operational strategies that prioritize liquidity and growth. This merger is expected to enhance the market presence of both companies while setting a precedent for future collaborations in this sector. Investors will be closely watching the completion of this transaction and its unfolding benefits, as it heralds a new chapter in the Canadian gold mining industry.