/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, BC, Aug. 17, 2021 /CNW/ - New Found Gold
Corp. ("New Found" or the "Company") (TSXV:
NFG) (OTC: NFGFF) is pleased to announce that it has entered into
an agreement with Canaccord Genuity Corp. and BMO Capital Markets
on behalf of a syndicate of underwriters (collectively, the
"Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a "bought deal" basis, 4,390,000
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 $11.39 per Flow-Through Share (the "Offering
Price") for gross proceeds of $50,002,100 (the "Offering").
The Company has granted the Underwriters an option, exercisable
at the Offering Price for a period of 30 days following the Closing
Date (as defined herein), to purchase up to an additional 15% of
the number of Flow-Through Shares sold under the Offering to cover
over-allotments, if any and for market stabilization purposes. The
Offering is expected to close on or about August 24, 2021 (the "Closing Date") and
is subject to the Company receiving all necessary regulatory
approvals.
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 Company's
Queensway Project located in Newfoundland, Canada and on the Company's
Lucky Strike Project located in Ontario,
Canada on or before December 31,
2022. All Qualifying Expenditures will be renounced in
favour of the subscribers effective December
31, 2021.
The Flow-Through Shares will be offered by way of a prospectus
supplement in each of the Provinces of Canada (other than the Province of
Quebec) and may also be offered by
way of private placement in the United
States and such other jurisdictions as agreed between the
parties.
The securities to be offered pursuant to the Offering have not
been, and will not be, registered under the U.S. Securities Act of
1933, as amended (the "U.S. Securities Act") or any U.S.
state securities laws, and may not be offered or sold in
the United States or to, or for
the account or benefit of, United
States persons absent registration or any applicable
exemption from the registration requirements of the U.S. Securities
Act and applicable U.S. state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About New Found Gold Corp.
New Found holds a 100% interest in the Queensway Project,
located 15km west of Gander,
Newfoundland, 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 200,000m drill program at Queensway. Nine
rigs are currently in operation at Queensway with the drill count
planned to increase to ten rigs by Q3 2021. With a current working
capital balance of approximately $68
million, New Found is well funded for this
program.
Please see the Company's website at www.newfoundgold.ca and the
Company's SEDAR profile at www.sedar.com.
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.
New Found Gold Corp.
Per: "Craig Roberts"
Craig Roberts, P.Eng., Chief
Executive Officer
Email: croberts@newfoundgold.ca
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.
Forward Looking Statement Cautions
This press release contains certain "forward-looking statements"
within the meaning of Canadian securities legislation relating to
further exploration and drilling on the Company's Queensway gold
project in Newfoundland;
interpretation of results of the drilling program and funding of
the drilling program and the timing related thereto. 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," "target," "suggestive,"
"probability," "appear," "pursuit," "potential," "goal,"
"objective," "prospective," 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, 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 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.sedar.com for a more complete
discussion of such risk factors and their potential effects.
SOURCE New Found Gold Corp.