Thursday, July 3, 2025

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

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Eric Sprott Invests $78 Million In First Majestic Silver

Eric Sprott is evidently a fan of First Majestic Silver (TSX: FR) (NYSE: AG), with...

Thursday, September 10, 2020, 04:53:03 PM

New Found Gold Hits 22.50 Metres Of 10 g/t Gold At Keats West

New Found Gold’s (TSXV: NFG) recently discovered Keats West zone has seen its footprint expanded...

Tuesday, March 21, 2023, 09:16:30 AM

New Found Gold Initial Resource: Where’s The Gold?

They say good things come to those that wait. But I don’t think whoever came...

Sunday, March 30, 2025, 03:20:00 PM

New Found Gold Expands Strike Of Iceberg Zone To 550 Metres

New Found Gold (TSXV: NFG) continues to prove-out a discovery it identified earlier this year...

Wednesday, May 31, 2023, 08:53:57 AM

New Found Gold Hits 85.67 g/t Gold Over 5.65 Metres At Keats

New Found Gold (TSXV: NFG) continues to report assay results from its massive 400,000 metre...

Wednesday, November 16, 2022, 08:20:47 AM