New Found Gold Invests US$2.0 Million To Secure MOU For Use Of Mill In Newfoundland

New Found Gold (TSXV: NFG) is investing funds into another junior mining corporation in an effort to secure a toll milling agreement.

The explorer has elected to invest US$2.0 million into Maritime Resources (TSXV: MAE) via an offering of non-convertible senior secured notes. Maritime is conducting the financing to fund the purchase of Point Rousse Mining, which owns the Pine Cove Mill.

As part of the funding, New Found has entered into a non-binding memorandum of understanding which will see the explorer conduct due diligence and obtain the exclusive right to negotiate with Maritime over a toll milling agreement at the Pine Cove Mill. The mill is found near Baie Verte, Newfoundland, roughly 270 kilometres by road from Gander, where New Found is based.

“The fully permitted Pine Cove site offers enormous flexibility for gold processing. The MOU with New Found illustrates the mining industry’s commitment to minimizing its environmental footprint by utilizing existing infrastructure,” commented Garett Macdonald, CEO of Maritime Resources.

READ: New Found Gold Hits 26 g/t Gold Over 9 Metres In Latest Iceberg Drilling

Pine Cove was in operation as recently as earlier this year, and currently maintains a capacity of 1,400 tonnes per day. The mill has access to port infrastructure and also features a large capacity tailings storage facility.

New Found Gold last traded at $5.85 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

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

First Majestic Posts Record Quarterly Silver Production In Q3

Nord Precious Metals Produces High Grade Silver Concentrate From Tailings

Related News

New Found Gold Reports Drill Results For Single Hole At Lotto Zone

New Found Gold (TSXV: NFG) this morning released assay results from a single drill hole...

Friday, October 2, 2020, 08:36:52 AM

New Found Gold Hits 61.50 g/t Gold Over 5.20 Metres At Keats

New Found Gold (TSXV: NFG) this morning reported further drill results from its massive ongoing...

Thursday, October 14, 2021, 08:31:03 AM

New Found Gold Releases Further Assays At Golden Joint Zone

New Found Gold (TSXV: NFG) this morning reported further drill results from its ongoing exploration...

Thursday, September 30, 2021, 08:31:15 AM

New Found Gold Hits 29.1 G/T Gold Over 11.4 Metres In Further Step Out Drilling At Keats

New Found Gold (TSXV: NFG) this morning reported further results from its ongoing exploration program...

Monday, March 1, 2021, 08:33:36 AM

New Found Gold Files To List On The NYSE

In a world filled with no-commission brokerage firms such as Robinhood, it appears everyone wants...

Monday, February 1, 2021, 08:25:05 AM