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VANCOUVER, BC, Aug. 24, 2021 /CNW/ - New Found Gold
Corp. ("New Found" or the "Company") (TSXV:
NFG) (OTC: NFGFF) is pleased to announce that it has closed its
previously-announced offering of 5,048,500 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 $57,502,415 (the "Offering") which
includes the full exercise of the Underwriters' (as defined herein)
over-allotment option.
The Offering was completed pursuant to an underwriting agreement
dated August 19, 2021, entered into
among the Company and a syndicate of underwriters led by Canaccord
Genuity Corp. and BMO Capital Markets and including CIBC World
Markets Inc., Desjardins Securities Inc. and Clarus Securities
Inc. (collectively, the "Underwriters"). Mr.
Eric Sprott participated for roughly
19.9% of the financing to maintain his 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 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 Company will have approximately $118-million in working capital post-closing of
the Offering.
The Flow-Through Shares were offered by way of a prospectus
supplement in each of the Provinces of Canada (other than the Province of
Quebec) and were also offered by
way of private placement in the United
States. Copies of the prospectus supplement and documents
incorporated by reference therein are available electronically on
SEDAR (www.sedar.com) under New Found's issuer profile.
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 post-closing of approximately $118-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; the use of
proceeds of the Offering; tax treatment of the Flow-Through Shares;
and the timing of the renunciation of the Qualifying
Expenditures. 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.
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SOURCE New Found Gold Corp.