New Found Gold (TSXV: NFG) is raising money again. The company this morning announced that it will be conducting a private placement for gross proceeds of $48.0 million. The catch, is that the entire placement is being taken down by Eric Sprott.
Under the terms of the financing, New Found Gold will sell a total of 5.0 million common shares, with no warrant attached, at a price of $9.60 per each. Gross proceeds are to amount to $48.0 million under the offering.
The financing will see Sprott’s stake in the company climb to 36.6 million common shares, or roughly an estimated 23.0% of the company. New Found meanwhile will see its working capital climb to $150 million following the close of the transaction, an enviable position for a junior gold explorer in Canada.
Proceeds from the placement are to be used for the further exploration of the firms flagship Queensway project in Newfoundland, as well as for working capital and general corporate purposes.
New Found Gold last traded at $9.67 on the TSX Venture.
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