Eric Sprott To Increase New Found Gold Stake To 31.4% Via Share Purchase From Novo Resources

Eric Sprott is substantially increasing his ownership in New Found Gold Corp (TSXV: NFG). It was revealed this morning that Sprott would be acquiring the entire 15.0 million share stake held by Novo Resources (TSX: NVO) in the company.

The transaction will see Sprott pay a 9.3% premium to the current market price of New Found Gold to acquire the stake, the total value of which is pegged at $125.9 million. The transaction is said to be conducted under two separate tranches.

The first tranche of the share sale will see Sprott acquire 8.25 million shares at a price of $8.35 per each, which will be completed on April 27. The second tranche meanwhile is set to be completed on August 5, with the 6.75 million shares under this tranche subject to escrow provisions and the approval of the TSX Venture.

For Novo, the transaction will enable the company to use the proceeds to pay off a US$40.0 million senior secured credit facility that it currently has outstanding with Sprott Private Resource Lending II. On a pro-forma basis, the company is expected to have a cash position of $97.1 million as a result of the share sale, which is to be used for exploration and feasibility studies across multiple of its properties.

For Sprott, his already substantial stake in New Found Gold is expected to expand rather dramatically. His ownership in the company, once both tranches are completed, is expected to grow by 9.1%, to that of 31.4%. Post-closing, his holdings will consist of 51.6 million common shares of the issuer.

New Found Gold last traded at $7.68 on the TSX Venture.


The author has no securities or affiliations related to any organization mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

$3,000 Gold Is Inevitable – The Daily Dive

Starting us off this week on the Daily Dive is Collin Kettell, the founder and...

Monday, November 22, 2021, 01:30:00 PM

New Found Gold To List On The NYSE, Releases Exploration Update

New Found Gold (TSXV: NFG) this morning provided an extensive exploration update for its operations...

Tuesday, July 6, 2021, 08:17:40 AM

New Found Gold Drills 18.23 g/t Gold Over 6.75 Metres At Jackpot

New Found Gold (TSXV: NFGC) is reporting that it has further extended the recent Jackpot...

Tuesday, November 14, 2023, 09:25:35 AM

New Found Gold Spikes In After Hours Trading After Announcing $69 Million In New Funding

Despite a disappointing mineral resource estimate that was announced earlier this year for the Queensway...

Wednesday, May 28, 2025, 08:23:04 AM

New Found Gold Begins 2023 With Drill Program Expansion

New Found Gold (TSXV: NFG) is starting off 2023 by expanding its excessive drill program...

Tuesday, January 3, 2023, 09:30:24 AM