New Found Gold Corp. (TSXV: NFG) has taken a significant step toward production by entering into a non-binding term sheet for a US$75 million loan facility with Nebari Natural Resources Credit Fund II, LP. The funding is earmarked to advance the company’s flagship Queensway Gold Project in Newfoundland and Labrador.
The senior secured debenture will be structured in two tranches: an initial US$50 million at closing, followed by an optional US$25 million available within 15 months. The facility carries a fixed annual interest rate of 9.25% with a 24-month term.
In a recent interview with Crux Investor, CEO Keith Boyle emphasized that the company’s existing infrastructure and cash flow were instrumental in securing the deal. “Yes, we have gold production and that’s helped in the discussions of the project financing facility that we’re in discussions with now, because yeah, we have production and we’ll have cash flow,” Boyle noted, adding that “access to the permitted mill and tailings saved us two, maybe three years on Queensway.”
The proceeds will support several critical milestones, including:
- Procurement of long-lead items and early construction activities.
- Upgrading and expanding the Pine Cove Mill to double its capacity to 1,400 tons per day.
- General working capital requirements.
This debt financing, combined with anticipated cash flow from the company’s Hammerdown Gold Project, forms a core pillar of New Found Gold’s strategy to reach first production at Queensway by late 2027. By utilizing existing permits and a phased development approach, the company aims to generate near-term value while minimizing shareholder dilution.
The agreement remains subject to customary closing conditions and regulatory approval from the TSX Venture Exchange.
New Found Gold last traded at $3.52 on the TSX Venture.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
