New Found Gold Corp. (“New Found” or the
“Company”) (TSX-V: NFG, NYSE-A: NFGC) is pleased to announce
that it has entered into three royalty purchase agreements (the
“Royalty Purchase Agreements”) with arm’s length royalty
holders (together, the “Vendors” and each, a
“Vendor”), whereby New Found will purchase part of each
Vendor’s royalty interest.
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Figure 1. Queensway North plan map
including location of Golden Bullet royalty. (Graphic: Business
Wire)
Highlights:
- Pursuant to the Royalty Purchase Agreements, the Company will
purchase, in aggregate, 0.6% of the Vendors’ 1.6% net smelter
returns royalty on the Company’s Golden Bullet property (the
“Royalty Interests”). New Found granted the Vendors the
Royalty Interests under a Mining Option Agreement dated as of
November 11, 2016 (the “Original Agreement”).
- Under the terms of the Royalty Purchase Agreements, as
consideration for the Royalty Interests, New Found will pay
$650,000 cash consideration and issue 100,000 common shares in the
capital of the Company (the “Common Shares”) to each Vendor,
for an aggregate cash consideration of $1,950,000 and aggregate
share consideration of 300,000 Common Shares.
- The Company has the right to purchase the remaining 1% net
smelter returns royalty from the Vendors for an aggregate price
equal to $1,000,000 (the “Repurchase Price”) by November 12,
2024, payable by (i) an aggregate of $100,000 and (ii) an
additional $4,950, in the aggregate, per year until the Repurchase
Price has been satisfied.
- The Golden Bullet property covers a key target area on the
Company’s Queensway Project including the extension of Keats South,
as well as the TCH, Knob, Bullet, Rocket, and Quarry zones, (Figure
1).
- This is the second such royalty purchase completed by New
Found. In November of 2021, New Found acquired a 0.6% royalty
underlying its Keats-Golden Joint-Lotto-Iceberg discovery area,
leaving a minimal 0.4% royalty burden.
Greg Matheson, COO of New Found, stated: “Following this
transaction, all significant mineralized zones along the Appleton
Fault Zone will be covered by a minimal royalty burden. As shown in
Figure 1 below, at Golden Bullet, we have the opportunity to remove
all royalties by exercising our right to buy back the remaining 1%
NSR. Golden Bullet encompasses the recent discovery of deep
mineralization at Keats South, as well as several other notable
zones along a 5km segment of the Appleton Fault. Immediately to the
north, there is a small 0.4% royalty covering our remaining
significant zones including Keats, Iceberg, Lotto, and Golden
Joint. Too often mineral projects suffer from high royalty burdens,
which can have significant negative effects on their future
potential. Through careful consideration and working closely with
the original optionors, we have avoided this potential pitfall and
feel we are in a strong position to maximize the future potential
of Queensway.”
The Royalty Purchase Agreements are subject to the satisfaction
of customary closing conditions, including TSX Venture Exchange and
NYSE-American approval.
All securities issued pursuant to the Royalty Purchase
Agreements will be subject to a hold period under applicable
Canadian securities laws, which will expire four months plus one
day from the date of closing of the Royalty Purchase
Agreements.
The securities to be issued under the Royalty Purchase
Agreements have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") and may not be offered or sold in the United
States absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any of New Found’s securities in the United
States.
About New Found Gold Corp.
New Found holds a 100% interest in the Queensway Project,
located 15km west of Gander, Newfoundland and Labrador, and just
18km 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 650,000m drill program at
Queensway and is well funded for this program with cash and
marketable securities of approximately $54 million as of July
2024.
Please see the Company’s website at www.newfoundgold.ca and the
Company’s SEDAR+ profile at www.sedarplus.ca.
Acknowledgements
New Found acknowledges the financial support of the Junior
Exploration Assistance Program, Department of Natural Resources,
Government of Newfoundland and Labrador.
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.
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
information” and “forward-looking statements” (collectively,
“forward-looking statements”) within the meaning of
applicable Canadian securities legislation and the United States
securities legislation, relating to the Royalty Purchase
Agreements, repurchase of the remaining net smelter royalty from
the Vendors, remaining royalty burdens, including the effects on
future potential of the Queensway project, TSX Venture Exchange and
NYSE American acceptance of the Royalty Purchase Agreements and the
timing for closing of the Royalty Purchase Agreements, drilling and
mineralization discoveries on the Queensway gold project and
funding of the drill program. 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”, “suggests”, “potential”, “goal”, “objective”,
“prospective”, “possibly”, 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 or the NYSE American, 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 the Company’s ability to satisfy the conditions to
close the Royalty Purchase Agreements, including the Company’s
ability to obtain the TSX Venture Exchange and NYSE American
approval, 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.sedarplus.ca for a more complete discussion of such risk
factors and their potential effects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730895545/en/
New Found Gold Corp. Per: “Collin Kettell” Collin Kettell, Chief
Executive Officer Email: ckettell@newfoundgold.ca Phone: +1 (845)
535-1486
Grafico Azioni New Found Gold (AMEX:NFGC)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni New Found Gold (AMEX:NFGC)
Storico
Da Gen 2024 a Gen 2025
