New Found Gold Corp. (TSX-V: NFG) (NYSE-A: NFGC) is pleased to announce that it has entered into three royalty purchase agreements with arm’s length royalty holders, whereby New Found will purchase part of each Vendor’s royalty interest.

Highlights:

• Pursuant to the Royalty Purchase Agreements, the Company will purchase, in aggregate, 0.6% of the Vendors’ 1.6% net smelter returns royalty on the Company’s Golden Bullet property. New Found granted the Vendors the Royalty Interests under a Mining Option Agreement dated as of November 11, 2016.
• Under the terms of the Royalty Purchase Agreements, as consideration for the Royalty Interests, New Found will pay $650,000 cash consideration and issue 100,000 common shares in the capital of the Company (the “Common Shares”) to each Vendor, for an aggregate cash consideration of $1,950,000 and aggregate share consideration of 300,000 Common Shares.
• The Company has the right to purchase the remaining 1% net smelter returns royalty from the Vendors for an aggregate price equal to $1,000,000 (the “Repurchase Price”) by November 12, 2024, payable by (i) an aggregate of $100,000 and (ii) an additional $4,950, in the aggregate, per year until the Repurchase Price has been satisfied.
• The Golden Bullet property covers a key target area on the Company’s Queensway Project including the extension of Keats South, as well as the TCH, Knob, Bullet, Rocket, and Quarry zones, (Figure 1).
• This is the second such royalty purchase completed by New Found. In November of 2021, New Found acquired a 0.6% royalty underlying its Keats-Golden Joint-Lotto-Iceberg discovery area, leaving a minimal 0.4% royalty burden.

Greg Matheson, COO of New Found, stated: “Following this transaction, all significant mineralized zones along the Appleton Fault Zone will be covered by a minimal royalty burden. As shown in Figure 1 below, at Golden Bullet, we have the opportunity to remove all royalties by exercising our right to buy back the remaining 1% NSR. Golden Bullet encompasses the recent discovery of deep mineralization at Keats South, as well as several other notable zones along a 5km segment of the Appleton Fault. Immediately to the north, there is a small 0.4% royalty covering our remaining significant zones including Keats, Iceberg, Lotto, and Golden Joint. Too often mineral projects suffer from high royalty burdens, which can have significant negative effects on their future potential. Through careful consideration and working closely with the original optionors, we have avoided this potential pitfall and feel we are in a strong position to maximize the future potential of Queensway.”

The Royalty Purchase Agreements are subject to the satisfaction of customary closing conditions, including TSX Venture Exchange and NYSE-American approval.

All securities issued pursuant to the Royalty Purchase Agreements 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 Royalty Purchase Agreements.

The securities to be issued under the Royalty Purchase Agreements 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 15km west of Gander, Newfoundland and Labrador, 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 650,000m drill program at Queensway and is well funded for this program with cash and marketable securities of approximately $54 million as of July 2024.

Figure 1. Queensway North plan map including location of Golden Bullet royalty. (Graphic: Business Wire)