New Found Closes $50 Million Bought Deal Financing, Led by Eric Sprott
Summary
VANCOUVER, British Columbia--(BUSINESS WIRE)--New Found Gold Corp. (New Found or the Company) (TSXV: NFG, NYSE-A: NFGC) is pleased to announce that it has closed its previously-announced bought deal public offering of 6,250,000 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 $8.00 per Flow-Through Share (the Offering Price) for aggregate gross proceeds of $50,000,000 (the Offering).The Offering was completed pursuant to an underwriting agreement dated December 9, 2022, entered into among the Company and a syndicate of underwriters led by BMO Capital Markets and including Paradigm Capital Inc., Canaccord Genuity Corp., Laurentian Bank Securities Inc., National Bank Financial Inc. and Roth Canada, Inc. (collectively, the Underwriters). Mr. Eric Sprott participated in the Offering to maintain his 19.9% interest in the Company.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 Companys Queensway Project located in Newfoundland, Canada on or before December 31, 2023. Information on the Companys website does not form a part of this press release.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.This press release contains certain "forward-looking statements" within the meaning of Canadian and U.S. securities legislation (including the Private Securities Litigation Reform Act of 1995), including statements relating to the use of proceeds of the Offering, the final acceptance of the Offering by the TSX Venture Exchange and NYSE American, the tax treatment of the Charity Flow-Through Common Shares. Except to the extent required by applicable securities laws and the policies of the TSXV or the NYSE American, the Company undertakes no obligation to update these forward-looking statements if managements beliefs, estimates or opinions, or other factors, should change. The reader is urged to refer to the Companys Annual Information Form and Managements Discussion and Analysis, publicly available through the Canadian Securities Administrators System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com or through the SECs Electronic Data Gathering and Retrieval System (EDGAR) at www.sec.gov for a more complete discussion of such risk factors and their potential effects.