New Found Gold Corp. (TSX-V: NFG) (OTC: NFGFF) is pleased to announce that it has completed its previously announced non-brokered private placement of 2,857,000 common shares of the Company that qualify as “flow-through shares” for the purposes of the Income Tax Act (Canada) at a price of $5.25 per FT Share, for gross proceeds to New Found of $14,999,250. The FT Shares have a hold period of four months and one day from closing, expiring on August 9, 2021. On closing, a cash finders’ fee equal to 3.5% of the gross proceeds of the Financing was paid to Clarus Securities Inc. Mr. Eric Sprott purchased 2,857,000 shares as a result of this Financing and following closing holds approximately 18.4% of the issued shares of the Company.
The gross proceeds from the issuance of the FT Shares will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2021 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares. If the Qualifying Expenditures are reduced by the Canada Revenue Agency or the Company fails to renounce Qualifying Expenditures in an amount equal to the gross proceeds, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable.
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 200,000-m drill program at Queensway utilizing eight drills. Following closing of the Financing the Company has approximately $79 million of working capital.
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