#Canada #Vancouver #New Found Gold #Queensway #Eric Sprott

New Found Gold Completes $20 Million Investment

New Found Gold Corp. (TSXV: NFG) (NYSE-A: NFGC), headquartered in Vancouver, has officially concluded a significant investment deal, securing $20 million from renowned financier Eric Sprott. This funding represents a critical step for the company as it continues to develop its promising Queensway Gold Project in Newfoundland and Labrador.

The recent investment involved a non-brokered private placement of 12,269,939 common shares, generating substantial gross proceeds for the company. The closing of this transaction not only raises the capital needed for further exploration and development at Queensway but also enhances Eric Sprott's already significant stake in the company. Following this investment, his ownership escalates to approximately 23.1% of all outstanding shares, solidifying his role as the largest shareholder.

Keith Boyle, the CEO of New Found Gold, expressed gratitude towards Mr. Sprott, emphasizing that his support reflects confidence in both the project and the new management team driving the company forward. The strategic investment will bolster the advancement of key milestones at Queensway, ensuring the project remains on track toward production.

The Queensway Gold Project, spanning 175,450 hectares along a 110 km strike extent, is situated in a jurisdiction known for its rich mineral deposits and excellent infrastructure. Recent drilling activities have yielded encouraging results, revealing new discoveries and underscoring the district-scale potential of the area. The project's robust financial backing following this latest funding initiative places New Found Gold in a promising position to capitalize on its exploration efforts.

The proceeds from the private placement not only aim to expedite the progress at Queensway but also address general corporate needs and working capital requirements. This comprehensive approach is crucial as the mining sector experiences fluctuations in market conditions and regulatory landscapes.

Sprott's engagement in this transaction is notable as it qualifies as a related party transaction based on his significant shareholdings. The company adhered to the Multilateral Instrument 61-101 regulations, ensuring proper disclosures were made and requesting shareholder approval during its recent Annual General and Special Meeting.

Investors and stakeholders are encouraged to review the early warning report relating to this investment, which will be available on SEDAR+. Additional inquiries can be directed to Mr. Sprott's Toronto office.

As New Found Gold continues its operational and exploratory activities at Queensway, insights into the project’s advancement can be anticipated. Both the management team and shareholders are optimistic about the potential discoveries yet to be unveiled as drilling proceeds.

In summary, New Found Gold's successful closure of the $20 million placement signifies a pivotal moment in its growth journey, fortifying its development strategy for the Queensway Gold Project and establishing a broader base of support from one of the most recognized investors in the mining sector. The company is poised for substantial progress in the coming months, striving toward its production objectives while maximizing shareholder value.

Conclusion

As New Found Gold embarks on this new chapter with enhanced financial backing, the focus on fully unlocking the potential of the Queensway Gold Project could yield exciting developments for both the company and its investors in the near future.