NFGC - New Found Gold Corp. Announces C$56 Million Bought Deal Financing | Benzinga
VANCOUVER, British Columbia, Oct. 30, 2023 (GLOBE NEWSWIRE) -- New Found Gold Corp. (TSXV:NFG, NYSE-A: NFGC)) ("New Found" or the "Company") has announced today that it has entered into an agreement with BMO Capital Markets, on behalf of itself and a syndicate of underwriters (collectively, the "Underwriters") led by BMO Capital Markets and Canaccord Genuity Corp., under which the Underwriters have agreed to buy, on a bought deal basis, 7,725,000 charity flow-through common shares of the Company (the "Charity Flow-Through Common Shares") at a price of C$7.25 per Charity Flow-Through Common Share for aggregate gross proceeds of approximately C$56 million (the "Offering"). The Company has granted the underwriters an option, exercisable at the offering price up to 30 days following the closing of the Offering, to purchase up to an additional 15% of the Charity Flow-Through Common Shares issued in connection with the Offering. Each Charity Flow-Through Common Share will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada).
The Company intends to use gross proceeds from the financing to continue its exploration and drilling efforts at its Queensway Project.
The Charity Flow-Through Common Shares will be offered by way of a prospectus supplement in all of the provinces and territories of Canada, excluding Quebec. The Charity Flow-Through Common Shares will also be offered by way of a U.S. prospectus supplement forming part of the Company's registration statement on Form F-10 in the United States. The Offering is expected to close on or about November 6, 2023 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the TSX Venture Exchange and the NYSE American.
Copies of the base shelf prospectus dated July 22, 2022 and prospectus supplement relating to the Offering, when available, may be obtained upon request in Canada by contacting BMO Nesbitt Burns Inc. ("BMO Capital Markets"), Brampton Distribution Centre C/O The Data Group of Companies, 9195 Torbram Road, Brampton, Ontario, L6S 6H2 by telephone at 905-791-3151 Ext 4312 or by email at torbramwarehouse@datagroup.ca, and in the United States by contacting BMO Capital ...