CAPITAL MARKETS

New Found Gold raises almost $60M in Sprott-backed financing

Cashed up for exploration

 Drill core from New Found Gold’s Golden Joint discovery at Queensway in Newfoundland

Drill core from New Found Gold’s Golden Joint discovery at Queensway in Newfoundland

The syndicate of underwriters exercised their over-allotment option in full for the offering, which was priced at $11.39 per flow-through share.

High profile investor Eric Sprott participated for about 19.9% to maintain his interest in the company, New Found said.

Despite an industry-wide lag in receiving assays, the company has been reporting a series of "phenomenal" results from an ongoing 200,000m drilling programme at Queensway, including 26.5m at 146.2g/t gold at the Keats zone in May. 

It then announced the discovery in June of the Golden Joint zone, 1km from Keats, where it intersected 5.25m at 430.2g/t from 207.85m.

New Found believes Queensway holds similarities to Kirkland Lake Gold's high-grade Fosterville mine in Victoria, Australia.

Other significant shareholders are Palisades Goldcorp and Novo Resources.

The company completed an IPO last year, raising $31.4 million at $1.30 per share.

Its shares (TSXV: NFG) peaked at $13.50 in June.

They closed down 4.7% yesterday to $8.53, valuing it at $1.3 billion (US$1 billion).

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