New Found Gold (TSXV: NFG) is the latest firm looking to heavily dilute its shareholders. The company late on Friday announced that it would be conducting a significant at-the-market financing, which is to be facilitated through both the TSX Venture as well as the New York Stock Exchange.
The financing will see the company look to raise gross proceeds of up to US$100 million via the direct sale of its common shares on the two stock exchanges. In Canada, the financing is to be conducted via BMO Nesbitt Burns and Paradigm Capital, while in the US the sales will flow through BMO Capital Markets Group.
As with any ATM financing, sales will be conducted at the discretion of the company during the time which the ATM is valid. The company has indicated that the financing is effective through to August 22, 2024, unless terminated or fulfilled earlier by the company.
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Proceeds from the financing are to be used for exploration and drilling at the firms flagship Queensway project, as well as the commissioning of a mineral resource estimate, as well as development of the firms Lucky Strike project and general corporate and administrative expenses.
New Found Gold last traded at $5.06 on the TSX Venture.
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