eResearch | On Tuesday, New Found Gold Corp. (TSXV: NFG) announced the successful closing of its initial public offering of 21 million common shares at a price of $1.30 per share for total gross proceeds of $27.3 million.
Subsequent to the close, the selling agents exercised their over-allotment option of an additional 3.15 million shares at $1.30 per share for gross proceeds to New Found Gold of almost $4.1 million.
After the IPO and exercise of the over-allotment option, New Found Gold has over 141.95 million shares issued, with 90.1 million shares subject to escrow or 180-day lock up agreements, and working capital of over $75 million.
New Found Gold has a shareholder base that includes:
- Palisades Goldcorp: 33%
- Eric Sprott: 18%
- Novo Resources (TSXV:NVO): 11%
- Rob McEwen: 7%
According to a Company report, New Found Gold is the largest mineral claimholder in Newfoundland and Labrador. The Company is currently focusing on the Queensway project, which is located 15 km west of Gander, Newfoundland.
New Found Gold budgeted $21.6 million for a Phase 1 & Phase 2 drill program at their Queensway project, totaling 100,000 metres, with a targeted completion date by the end of 2021.
The Company has already spent more than $10 million in exploration at the Queensway project and intercepted 92.9 g/t gold over 19.0 metres at 96 metres down during their maiden drill program in 2019.
The Queensway project covers 151,030 hectares within the Central Newfoundland Gold Belt that hosts numerous gold deposits, including Marathon Gold’s (TSX: MOZ) Valentine Lake deposit (4.1 million ounces gold) and Maritime Resources’ (TSXV: MAE) Hammerdown project (1.0 million ounces gold), and other high-grade gold projects including Sokoman Minerals’ (TSXV: SIC) Moosehead project.
New Found Gold closed the week at $1.54, up $0.24.
//
MAP 1: Gold Deposits and Showings in Newfoundland (gold dots)
