New Found Gold Executives Exercise $5.25 Million Worth Of Options

New Found Gold (TSXV: NFG) this morning issued a release touting insider transactions for the company. The junior gold explorer has seen two executives, Chairman Collin Kettell and CEO Craig Roberts, exercise options to the tune of $5.25 million, bringing in additional working capital for the firm.

Executive Chairman Kettell exercised a total of 4.28 million options he previously held of the company at an average exercise price of $1.06 per share. Proceeds from the transaction amount to $4.5 million, providing him with a sizeable common share position in the company.

CEO Craig Roberts meanwhile exercised a total of 700,000 options to acquire common shares of the issuer, bringing in $700,000 in funds to company coffers. Roberts then subsequently disposed of the common shares on the markets as of December 29, which was not disclosed in the release, for proceeds of $3.0 million, leaving him with 450,000 common shares under direct ownership.

However, he then subsequently acquired the same amount of shares on the public markets within an RRSP, a new holding location for the executive. The transaction as a result made his total share ownership a wash, with total holdings of common shares of 1.15 million, while reportedly holding on to 2.5 million further options.

Following the transaction, the company reportedly has a working capital position of $67.0 million. The company also subsequently issued 6.2 million stock options with an exercise price of $4.10 per share and an expiry of December 31, 2025.

New Found Gold last traded at $4.20 on the TSX Venture.

Information for this briefing was found via Sedar and New Found Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.