/THIS NEWS RELEASE DOES NOT CONSTITUTE AN
OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF NEW FOUND
GOLD CORP.'S SECURITIES IN THE UNITED
VANCOUVER, BC, Oct. 21, 2021 /CNW/ - New Found Gold
Corp. ("New Found" or the "Company") (TSXV:
NFG) (NYSE American: NFGC) is pleased to announce that it has
arranged a non-brokered private placement with Mr. Eric Sprott of 5 million common shares of New
Found (the "Common Shares"), at a price of C$9.60 per Common Share, for gross proceeds of
C$48 million (the
New Found intends to use the proceeds of the Offering to fund
exploration of New Found's 100% owned Queensway Project and for
working capital and general corporate purposes. The Offering is
subject to the satisfaction of customary closing conditions,
including the approval of the TSX Venture Exchange (the
"TSXV") and approval by the shareholders of the Company if
required by the TSXV.
Collin Kettell, Founder &
Executive Chairman of New Found Gold stated: "Mr. Eric Sprott has been a major supporter of New
Found Gold since prior to the Company's IPO. New Found Gold finds
itself in an enviable position, well-funded with approximately
$150 million in working capital post
raise, as the Company continues to explore for high-grade gold at
its Queensway Project. With a district size land package and our
success to date, we believe there is great potential for this
success to continue to build as we advance our program. On behalf
of management and the Board of Directors, I would like to thank
Eric for his continued support."
Mr. Sprott currently beneficially owns 31,601,200 common shares
of New Found. Upon closing of the Offering, Mr. Sprott will
beneficially own 36,601,200 common shares of New Found.
In the event the TSXV requires shareholder approval of the
Offering, the Company will call a special meeting of its
shareholders. The Offering is expected to close shortly after all
necessary approvals are obtained.
Any securities issued pursuant to the Offering will be subject
to a hold period under applicable Canadian securities laws, which
will expire four months plus one day from the date of closing of
the Offering. A 1% finders' fee is payable in connection with the
The securities to be issued under the Offering have not been,
and will not be, registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") and may not
be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements of the U.S. Securities Act. This news
release does not constitute an offer to sell or a solicitation of
an offer to buy any of New Found's securities in the United States.
About New Found Gold Corp.
New Found holds a 100% interest in the Queensway Project,
located 15 km west of Gander,
Newfoundland, and just 18 km 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. With a
current working capital balance of approximately $103 million, New Found is well funded for this
Please see the Company's website at www.newfoundgold.ca and the
Company's SEDAR profile at www.sedar.com.
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
Phone: + 1 (910) 406 2407
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the 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 the Offering, TSXV approval of the Offering, the
requirement for and timing of shareholder approval of
the Offering, the closing of the Offering, and the timing related
thereto, drilling on the Queensway gold project and funding
of the drilling program. 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," "suggests," "potential," "goal," "objective,"
"prospective," "possibly," 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 TSXV, 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 the Company's ability to
satisfy the conditions to close the Offering, including the
Company's ability to obtain all necessary shareholder and stock
exchange approvals, possible accidents and other risks associated
with mineral exploration operations, the risk that the Company will
encounter unanticipated geological factors, risks associated with
the interpretation of assay results and the drilling program, 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
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SOURCE New Found Gold Corp.