New Found Gold Corp. (TSXV: NFG) reported this morning that it has entered into three royalty purchase agreements from its Linear and JBP Linear properties. The mining firm is repurchasing 0.2% net return from each of the vendors who were previously granted the royalty interests in July 2016.
Under the terms of the agreement, the firm is purchasing an aggregate of 0.6% net returns for a total consideration of $3.9 million in cash and 458,823 in common shares. Each vendor will get $1.3 million and 152,941 common shares.
The properties cover key target areas in the company’s 100%-owned Queensway Project, including the Keats, Golden Joint, and Lotto discoveries.
Once the transaction is completed, the firm said there will remain a “low royalty burden of just 0.4%” on the ground covering the Keats-Golden Joint-Lotto-Big Dave corridor. The transactions are subject to customary closing conditions and the approval of the TSX Venture Exchange.
New Found Gold last traded at $7.78 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. 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.