New Found Gold Announces US$75 Million Term Sheet to Advance Queensway Development

Core Viewpoint - New Found Gold Corp. has entered into a non-binding term sheet for a loan facility of up to US$75,000,000 to finance the development of its Queensway Gold Project in Newfoundland and Labrador, Canada [1][2]. Financing Details - The loan proceeds will be allocated for the development of the Queensway Gold Project, including procurement of long lead items, early construction activities, and upgrading the Pine Cove Mill for off-site milling [2]. - The loan facility will be structured in two tranches: US$50,000,000 at closing and an additional US$25,000,000 within 15 months after closing, subject to certain conditions [3]. - The loan will bear a fixed annual interest rate of 9.25%, payable quarterly, with a term of 24 months and an option to extend by six months [3]. Warrants and Security - The company will issue non-transferable warrants to the lender, valued at US$3,750,000 for Tranche 1 and US$1,875,000 for Tranche 2, exercisable at a 25% premium to the lower of the volume weighted average price [4]. - All subsidiaries of the company will guarantee the loan facility, secured by first-lien security interests over all present and future properties [5]. Conditions and Advisory - The loan facility is subject to customary conditions, including the negotiation and execution of definitive financing documents and regulatory approvals [6]. - Cutfield Freeman & Co. Ltd. is acting as financial advisors to the company regarding the loan facility and overall project finance strategy [7]. Company Overview - New Found Gold is an emerging Canadian gold producer with a 100% interest in the Queensway and Hammerdown projects, focusing on advancing Queensway to production [9]. - The company completed a Preliminary Economic Assessment (PEA) for Queensway in July 2025, indicating significant exploration potential [10]. - The company has established a new board and management team, with a focus on growth and value creation [11].