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New Found Completes Acquisition of Labrador Gold’s Kingsway Project

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New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFGC) has completed the acquisition of a 100% interest in Labrador Gold’s Kingsway Project, located in Gander, Newfoundland and Labrador. This acquisition includes related assets from LabGold. As consideration, New Found Gold issued 5,263,157 common shares to Labrador Gold. This strategic acquisition is aimed at expanding New Found Gold's asset base and potential resource holdings in a prolific mining region.

Positive
  • New Found Gold has acquired a 100% interest in the Kingsway Project, potentially expanding its resource base.
  • The acquisition includes additional related assets, enhancing the company's overall asset portfolio.
Negative
  • Issuance of 5,263,157 common shares to Labrador Gold may lead to shareholder dilution.

The acquisition of the Kingsway Project by New Found Gold is a notable development. The issuance of 5,263,157 common shares as consideration impacts the company's share structure and dilutes existing shareholders. However, it also highlights an effort to expand their asset base, potentially increasing future revenue streams and enhancing long-term growth.

From a financial perspective, such acquisitions can be beneficial if the acquired assets significantly contribute to the company's financial health and operational capacity. Investors should closely monitor the upcoming financial statements to gauge how the Kingsway Project integrates with New Found Gold's existing operations. Historical performance, future gold yield estimates and cost efficiencies are critical factors to consider.

Given the gold market's volatility, this acquisition might be perceived as a strategic move to capitalize on potential price increases. However, the immediate financial impact may be neutral, as the dilution effect balances out the potential long-term benefits. Investors should remain vigilant about how New Found Gold plans to leverage the new assets.

This acquisition positions New Found Gold more prominently in the competitive gold exploration market. The Kingsway Project, located in a geologically favorable region, could enhance the company's asset portfolio, which is important for long-term sustainability in the mining sector.

The issuance of shares instead of cash indicates a strategic move to conserve liquidity while still acquiring valuable assets. This is important for maintaining operational flexibility. Market participants should evaluate the resource potential of the Kingsway Project, including any historical drilling results and its proximity to other successful mining operations, to understand potential synergies and future upside.

The broader market impact may be muted in the short term, as the dilution effect on share value can offset immediate enthusiasm. However, if the Kingsway Project shows promising results, New Found Gold's market position could strengthen significantly. Investors should keep an eye on subsequent exploration updates and market reactions.

VANCOUVER, British Columbia--(BUSINESS WIRE)-- New Found Gold Corp. (“New Found or the Company”) (TSX-V: NFG, NYSE-A: NFGC) is pleased to announce the Company has successfully completed its previously announced acquisition of a 100% interest in Labrador Gold Corp.’s (“LabGold”) Kingsway Project (the “Kingsway Project”), located in Gander, Newfoundland and Labrador, as well as certain related assets of LabGold (together with the Kingsway Project, the “Purchased Assets”) (the “Acquisition”).

Pursuant to the Acquisition, New Found has issued to LabGold 5,263,157 common shares as consideration for the Purchased Assets.

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.

Please see the Company’s website at www.newfoundgold.ca and the Company’s SEDAR+ profile at www.sedarplus.ca.

Contact

To contact the Company, please visit the Company’s website, www.newfoundgold.ca and make your request through our investor inquiry form. Our management has a pledge to be in touch with any investor inquiries within 24 hours.

New Found Gold Corp.
Per: “Collin Kettell”
Collin Kettell, Chief Executive Officer
Email: ckettell@newfoundgold.ca
Phone: +1 (845) 535-1486

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statement Cautions

This press release contains certain “forward-looking statements” within the meaning of Canadian securities legislation, relating to the Acquisition. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “interpreted”, “intends”, “estimates”, “projects”, “aims”, “suggests”, “indicate”, “often”, “target”, “future”, “likely”, “pending”, “potential”, “encouraging”, “goal”, “objective”, “prospective”, “possibly”, “preliminary”, and similar expressions, or that events or conditions “will”, “would”, “may”, “can”, “could” or “should” occur, or are those statements, which, by their nature, refer to future events. The Company cautions that forward-looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made, and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except to the extent required by applicable securities laws and the policies of the TSX Venture Exchange, the Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause future results to differ materially from those anticipated in these forward-looking statements include risks associated with obtaining, possible accidents and other risks associated with mineral exploration operations, the risk that the Company will encounter unanticipated geological factors, risks associated with the interpretation of exploration results and the results of the metallurgical testing program, the possibility that the Company may not be able to secure permitting and other governmental clearances necessary to carry out the Company’s exploration plans, the risk that the Company will not be able to raise sufficient funds to carry out its business plans, and the risk of political uncertainties and regulatory or legal changes that might interfere with the Company’s business and prospects. The reader is urged to refer to the Company’s Annual Information Form and Management’s discussion and Analysis, publicly available through the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR+) at www.sedarplus.ca for a more complete discussion of such risk factors and their potential effects.

New Found Gold Corp.

Per: “Collin Kettell”

Collin Kettell, Chief Executive Officer

Email: ckettell@newfoundgold.ca

Phone: +1 (845) 535-1486

Source: New Found Gold Corp.

FAQ

What is the Kingsway Project acquisition by New Found Gold?

New Found Gold has acquired a 100% interest in the Kingsway Project from Labrador Gold, issuing 5,263,157 shares as consideration.

When did New Found Gold complete the acquisition of the Kingsway Project?

New Found Gold completed the acquisition of the Kingsway Project in October 2023.

What assets did New Found Gold acquire from Labrador Gold?

New Found Gold acquired the Kingsway Project and certain related assets from Labrador Gold.

How many shares did New Found Gold issue for the acquisition of the Kingsway Project?

New Found Gold issued 5,263,157 common shares to Labrador Gold as part of the acquisition.

What is the stock symbol for New Found Gold?

The stock symbol for New Found Gold is NFGC on the NYSE American exchange.

New Found Gold Corp.

NYSE:NFGC

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