(Kitco News) - New Found Gold (TSXV: NFG,NYSE: NFGC) announced Thursday that it has arranged a non-brokered privateplacement with Mr. Eric Sprott of 5 million common shares of New Found, at aprice of C$9.60 per common share, for gross proceeds of C$48 million.
New Found said it intends touse the proceeds of the offering to fund exploration of New Found's 100% ownedQueensway project and for working capital and general corporate purposes.
According to the company'sstatement, Eric Sprott currently beneficially owns 31,601,200 common shares ofNew Found. Upon closing of the Offering, Eric Sprott will beneficially own36,601,200 common shares of New Found.
Founder and ExecutiveChairman Collin Kettell stated, "Mr. Eric Sprott has been a major supporter ofNew Found Gold since prior to the company's IPO. New Found Gold finds itself inan enviable position, well-funded with approximately $150 million in workingcapital post raise, as the company continues to explore for high-grade gold atits Queensway project."
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 company is currentlyundertaking a 200,000m drill program at Queensway.
By Vladimir BasovFor Kitco News
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