New Found Gold Announces Initial Draw of $70M Funding Under EdgePoint Senior Secured Credit Facility

Rhea-AI Summary

New Found Gold (NYSE American:NFGC) drew the initial $70M Tranche 1 from its previously announced $105M senior secured credit facility with EdgePoint. Together with a recent $115M bought deal, management says the company is fully funded to advance Queensway Phase 1 and target production in late 2027.

Tranche 1 includes a 2% original issue discount and 2,489,818 warrants at a $3.30 exercise price, expiring May 15, 2029. Funds will support Queensway and Hammerdown projects. The company also highlighted a prior audit going concern qualification for fiscal 2025.

Positive

• $70M Tranche 1 under $105M senior secured facility funded by EdgePoint
• Recent $115M oversubscribed bought deal plus facility seen as fully funding Phase 1
• Optional additional $35M Tranche 2 available within 12 months at company discretion
• 2,489,818 warrants priced at $3.30, exercisable until May 15, 2029
• Tranche 1 proceeds earmarked for Queensway development and Hammerdown production

Negative

• Credit facility carries a 2% original issue discount, raising effective financing cost
• Issuance of 2,489,818 warrants creates potential future equity dilution
• Access to Tranche 2 depends on TSXV approval and NYSE American authorization
• Audit report for fiscal 2025 includes a going concern qualification

News Market Reaction – NFGC

-3.54%

-3.54% Session close to close

In the May 19 session, NFGC declined 3.54%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms the initial $70,000,000 draw under the $105,000,000 EdgePoint senior secu...

Analysis

This announcement confirms the initial $70,000,000 draw under the $105,000,000 EdgePoint senior secured credit facility, alongside a recent $115M oversubscribed bought deal, to advance Queensway Phase 1 and Hammerdown toward production. Historical filings note going‑concern uncertainty, so this funding forms part of a broader $220.1 million package described in recent 6‑K reports. Investors may watch future Tranche 2 decisions, warrant exercises at $3.30, and progress against the late‑2027 production timeline.

Key Figures

Tranche 1 funding: $70,000,000 Credit facility size: $105,000,000 Tranche 2 funding: $35,000,000 +5 more

8 metrics

Tranche 1 funding $70,000,000 Initial draw under EdgePoint senior secured credit facility

Credit facility size $105,000,000 Maximum aggregate EdgePoint senior secured credit facility

Tranche 2 funding $35,000,000 Additional funds available within 12 months at company discretion

Original issue discount 2.00% Discount applied to Tranche 1 principal amount

Tranche 1 warrants 2,489,818 warrants Non-transferable, issued to EdgePoint and nominees

Warrant value US$6,000,000 Aggregate value of Tranche 1 Warrants

Warrant exercise price $3.30 per share Exercise price for each Tranche 1 Warrant

Bought deal proceeds $115M Recently completed oversubscribed bought deal financing

Historical Context

5 past events · Latest: May 12 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 12	Q1 2026 filings	Neutral	+4.2%	Filed Q1 2026 financial statements and MD&A with regulators and SEC.
May 06	Peer PEA release	Positive	+6.0%	Positive PEA for Rua Gold’s Auld Creek project with detailed economics.
May 04	Queensway drilling	Positive	-1.4%	High‑grade 2025 infill and below‑pit drilling results at Queensway AFZ Core.
Apr 27	Bought deal financing	Neutral	-1.4%	Closed bought‑deal share offering raising about C$115M for Queensway and corporate use.
Apr 22	Dropkick expansion	Positive	+1.8%	Expanded Dropkick Zone at Queensway with high‑grade intercepts and longer strike.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent exploration and financing updates were generally met with modestly positive or neutral moves, though one strong drilling release saw a negative reaction, showing occasional divergence between positive news and price.

Recent Company History

Over the past month, New Found Gold reported multiple milestones: final 2025 drilling results at Queensway’s AFZ Core and Dropkick Zone, an equity financing for gross proceeds of C$115,055,200, and Q1 2026 financial filings. It also closed a bought‑deal financing and continued expanding Queensway’s high‑grade zones. Today’s announcement of the initial $70,000,000 draw under the $105,000,000 EdgePoint credit facility builds directly on the April 2026 financing and project development strategy for Queensway and Hammerdown.

Key Terms

senior secured credit facility, original issue discount, non-transferable warrants, statutory hold period, +2 more

6 terms

senior secured credit facility financial

"EdgePoint has funded the initial draw of $70,000,000 under the previously announced $105,000,000 senior secured credit facility"

A senior secured credit facility is a loan or revolving line of credit where lenders have first legal claim on specific company assets (collateral) and the debt ranks above other obligations for repayment. For investors it signals where a lender sits in the repayment pecking order and how much protection creditors have if the company struggles, affecting credit costs, the company’s ability to borrow more, and potential recoveries in a default — like a mortgage taking priority over other claims on a house.

original issue discount financial

"Such advance reflects a principal amount subject to an original issue discount of 2.00%."

Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.

non-transferable warrants financial

"the Company issued to EdgePoint and its nominees 2,489,818 non-transferable warrants (the "Tranche 1 Warrants")"

Non-transferable warrants are rights issued by a company that let the holder buy a set number of shares at a predetermined price, but those rights cannot be sold or given to anyone else. Think of them as a one-person ticket to buy stock that can only be used by the original holder; for investors this matters because it limits liquidity and resale options, affects the holder’s ability to realize value, and still creates potential share dilution when exercised.

statutory hold period regulatory

"The Tranche 1 Warrants will be exercisable until May 15, 2029 and will be subject to a statutory hold period of four months and one day"

A statutory hold period is a legally required time window during which newly issued securities or shares received by insiders cannot be sold. It matters to investors because it affects when those shares can enter the market, influencing supply, short-term liquidity and potential price pressure—think of it like a temporary “no-sell” tag that prevents an immediate flood of items onto a store shelf after a big restock.

bought deal financing financial

"together with the $115M raised in the recently completed oversubscribed bought deal financing, we are now fully funded"

Bought deal financing is when an investment bank agrees to buy an entire new stock or bond offering from a company up front and then resells it to investors — like a wholesaler buying all the goods from a maker and taking on the risk of selling them. For investors this matters because it provides the issuing company fast, certain cash but often at a discount to market price, can increase share supply quickly, and may signal urgency to raise funds.

going concern financial

"contained a going concern qualification and an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern."

Going concern is the accounting assumption that a company will keep operating and meeting its obligations for the foreseeable future. The phrase matters most when a company or its auditors disclose substantial doubt about it, a formal warning that the business may not have enough resources to continue without raising money, restructuring, or selling assets. That language in a filing or press release signals elevated financial risk.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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All amounts in Canadian dollars unless otherwise noted

Vancouver, British Columbia--(Newsfile Corp. - May 19, 2026) - New Found Gold Corp. (TSXV: NFG) (NYSE American: NFGC) ("New Found Gold" or the "Company") is pleased to announce EdgePoint Investment Group Inc. ("EdgePoint") has funded the initial draw of $70,000,000 under the previously announced $105,000,000 senior secured credit facility (see the New Found Gold press release dated April 20, 2026).

"Following the receipt of the $70M Tranche 1 funding, together with the $115M raised in the recently completed oversubscribed bought deal financing, we are now fully funded to advance Queensway Phase 1 development and construction and bring the project into production in late 2027, in line with our development timeline," Keith Boyle, CEO of New Found Gold, commented. "With this key milestone complete, we are pleased to welcome EdgePoint as both a cornerstone investor and a valued partner in this next phase of development. Over the course of the next year, the Company will remain focused on disciplined execution as we advance Queensway toward production."

Tranche 1 Funding

On April 20, 2026, the Company entered into a credit agreement with EdgePoint providing for a senior secured credit facility of up to $105,000,000 ("the Credit Facility") (see the New Found Gold press release dated April 20, 2026). The loans under the Credit Facility are to be advanced in two tranches: $70,000,000 (the "Tranche 1 Funds") to be funded upon delivery of the security package and the satisfaction of certain other conditions precedent ("Tranche 1") and an additional $35,000,000 (the "Tranche 2 Funds") to be funded no later than 12 months after the Tranche 1 drawdown date at the discretion of the Company. With the Company having delivered the security and satisfied the conditions for Tranche 1 funding, EdgePoint has advanced the Tranche 1 Funds. Such advance reflects a principal amount subject to an original issue discount of 2.00%.

In connection with the advance of the Tranche 1 Funds, the Company issued to EdgePoint and its nominees 2,489,818 non-transferable warrants (the "Tranche 1 Warrants") having an aggregate value of US$6,000,000. Each Tranche 1 Warrant entitles the holder to purchase one common share of the Company (each, a "Common Share") at an exercise price of $3.30 per Common Share, subject to customary adjustment provisions. The Tranche 1 Warrants will be exercisable until May 15, 2029 and will be subject to a statutory hold period of four months and one day under applicable Canadian securities laws, which will expire on September 16, 2026.

The Tranche 1 Funds will be used for general corporate and working capital purposes of the Company and its subsidiaries, including financing for the development of the Queensway Gold Project ("Queensway") and bringing the Hammerdown Gold Project ("Hammerdown") into commercial production.

Tranche 2 Funding

The advance of the Tranche 2 Funds and the corresponding issuance to EdgePoint and its nominees of non-transferable warrants for the purchase of Common Shares (the "Tranche 2 Warrants"), having an aggregate value of US$3,000,000, remain at the Company's discretion and are subject to the satisfaction of further conditions precedent, including approval of the TSX Venture Exchange (the "TSXV") and authorization of the NYSE American LLC (the "NYSE American").

Required Disclosure

New Found Gold advises that the audit report issued by the Company's independent registered public accounting firm in connection with the Company's Annual Report on Form 40-F for the fiscal year ended December 31, 2025 contained a going concern qualification and an explanatory paragraph expressing substantial doubt about the Company's ability to continue as a going concern. 

The Company's Annual Report on Form 40-F for the fiscal year ended December 31, 2025 was filed with the U.S. Securities and Exchange Commission on March 25, 2026.  

This announcement is being made solely to comply with Sections 401(h) and 610(b) of the NYSE American Company Guide. It does not represent any change or amendment to the Company's Annual Report on Form 40-F for the fiscal year ended December 31, 2025.

Additional information may be found in the Company's filings with the U.S. Securities and Exchange Commission at www.sec.gov.

Advisors

Cutfield Freeman & Co. Ltd. , an independent global mining finance advisory firm, has acted as financial advisors to the Company in relation to the Credit Facility and its overall project finance strategy (see the New Found Gold press release dated November 28, 2025). Blake, Cassels & Graydon LLP has acted as legal counsel to the Company. Miller Thomson LLP has acted as legal counsel to EdgePoint.

About EdgePoint

EdgePoint is an employee-owned and investment-led Canadian wealth management company, based in Toronto, Ontario.

About New Found Gold

New Found Gold is an emerging Canadian gold producer with assets in Newfoundland and Labrador, Canada. The Company holds a 100% interest in Queensway and Hammerdown, which includes the Hammerdown deposit and Pine Cove milling and tailings facilities. The Company is currently focused on advancing its flagship Queensway to production and bringing the Hammerdown deposit into commercial gold production.

In July 2025, the Company completed a PEA at Queensway (see New Found Gold press release dated July 21, 2025). Recent drilling continues to yield new discoveries along strike and down dip of known gold zones, pointing to the district-scale potential that covers a +110 km strike extent along two prospective fault zones at Queensway.

Throughout 2025, New Found Gold built a new board of directors and management team and has a solid shareholder base which includes cornerstone investor Eric Sprott. The Company is focused on growth and value creation.

Keith Boyle, P.Eng.
Chief Executive Officer
New Found Gold Corp.

Contact

For further information on New Found Gold contact us through our investor inquiry form on our website or contact:

Fiona Childe, Ph.D., P.Geo.
Vice President, Communications and Corporate Development
Phone: +1 (416) 775-2700
Email: contact@newfoundgold.ca

Qualified Person

The scientific and technical information disclosed in this press release was reviewed and approved by Keith Boyle, P.Eng., CEO, and a Qualified Person as defined under NI 43-101. Mr. Boyle consents to the publication of this press release by New Found Gold. Mr. Boyle certifies that this press release fairly and accurately represents the scientific and technical information that forms the basis for this press release.

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

Forward-Looking Information

This press release contains certain "forward-looking statements" within the meaning of Canadian and United States securities legislation, including statements regarding the Tranche 2 Funds; issuance of Tranche 2 Warrants in connection with the advances of the Tranche 2 Funds; approval by the TSXV and authorization of the NYSE American of the Tranche 2 Warrants; the use of proceeds of the Credit Facility; Company's focus on advancing Queensway to production and the funding required to advance Queensway Phase 1 to production, and bringing the Hammerdown deposit into commercial gold production; and the Company's focus on growth and value creation. 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 TSXV and NYSE American, 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 the Company's ability to complete exploration and drilling programs as expected, 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 and on the website of the United States Securities and Exchange Commission at www.sec.gov for a more complete discussion of such risk factors and their potential effects

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297893

FAQ

What did New Found Gold (NYSE American:NFGC) announce about the $70M EdgePoint credit facility on May 19, 2026?

New Found Gold announced funding of the $70M Tranche 1 under its $105M senior secured credit facility with EdgePoint. According to New Found Gold, this draw follows delivery of security and conditions precedent and includes a 2% original issue discount and associated warrant issuance.

How will the $70M Tranche 1 funding impact Queensway Phase 1 for New Found Gold (NFGC)?

The $70M Tranche 1 funding will help finance Queensway Phase 1 development and construction. According to New Found Gold, combined with a recent $115M bought deal, the company believes it is fully funded to advance Queensway and target bringing the project into production in late 2027.

What are the terms of the EdgePoint Tranche 1 warrants issued by New Found Gold (NFGC)?

New Found Gold issued 2,489,818 non-transferable Tranche 1 warrants to EdgePoint and nominees. According to New Found Gold, each warrant lets holders buy one common share at $3.30, with customary adjustments, exercisable until May 15, 2029, subject to a four-month-plus-one-day Canadian hold period.

What is the Tranche 2 funding option under New Found Gold’s EdgePoint credit facility (NFGC)?

Tranche 2 provides up to an additional $35M in funding under the EdgePoint credit facility. According to New Found Gold, drawing Tranche 2 is at the company’s discretion within 12 months and requires further conditions, including TSX Venture Exchange approval and NYSE American authorization, plus related warrant issuance.

How will New Found Gold (NFGC) use the proceeds from the $70M Tranche 1 funding?

Tranche 1 proceeds will support general corporate and working capital needs and key project spending. According to New Found Gold, funds will help finance development of the Queensway Gold Project and advance the Hammerdown Gold Project into commercial production through its subsidiaries.

What going concern disclosure did New Found Gold (NFGC) make for its fiscal 2025 financials?

New Found Gold reported that its independent auditor included a going concern qualification in the fiscal 2025 audit report. According to New Found Gold, the report expressed substantial doubt about its ability to continue as a going concern and was filed in its Form 40-F on March 25, 2026.

Does the new EdgePoint funding change New Found Gold’s prior going concern qualification (NFGC)?

The company stated that this announcement does not amend its previously filed 2025 Form 40-F. According to New Found Gold, the going concern qualification remains part of that filing, and this disclosure is made to comply with specific NYSE American Company Guide sections.