Eric Sprott invests C$48 million in New Found Gold

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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 Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Another 'Bubble Check' for the gold sector

Gold stocks continue to hit new highs

Some mining stocks exposed to Burkina Faso take major hit

Gold stocks again hit new highs

Gold stocks reach new highs on metal price gain