New Found Gold Announces C$49 Million Bought Deal Financing and C$20 Million Private Placement: Continued Support with Lead Orders by Strategic Investor Eric Sprott

Core Viewpoint - New Found Gold Corp. has announced a financing agreement involving a bought deal for charity flow-through common shares, aiming to raise approximately C$49 million to advance its Queensway Gold Project [1][4]. Financing Details - The company will issue 21,400,000 charity flow-through common shares at a price of C$2.29 per share, with gross proceeds expected to be around C$49 million [1]. - An additional option allows underwriters to purchase up to 15$1.63 per share is also planned, targeting gross proceeds of approximately C$20 million [2]. Shareholder Participation - Eric Sprott intends to participate in both the offering and the private placement to increase his shareholding from approximately 19% to over 20% [3]. - The company will seek disinterested shareholder approval due to Mr. Sprott's increased control post-private placement [3]. Use of Proceeds - Proceeds from the offering will be allocated to eligible Canadian exploration expenses related to the Queensway Gold Project, with a deadline for these expenditures set for December 31, 2026 [4]. - Funds from the private placement will be used to advance the Queensway Gold Project and for general corporate purposes [5]. Project Overview - New Found Gold holds a 100% interest in the Queensway Gold Project, located in Newfoundland and Labrador, which is recognized for its excellent infrastructure and skilled workforce [11]. - The project has shown promising results from recent drilling, indicating significant district-scale potential across its 175,600 hectares [12].