New Found Gold To Raise $50 Million Via Flow Through Bought Deal Financing

New Found Gold (TSXV: NFG) last night after the bell announced that it will be conducting a significant bought deal financing. The financing will see the company raise a total of $50.0 million via a flow through financing.

Lead by the Canaccord Genuity and BMO, the financing will see the company sell a total of 4.39 million flow through common shares. Shares are to be sold at a price of $11.39 per each, with no warrant offered with the financing.

A 30-day over allotment option has been granted in connection with the financing, which could potentially see an additional 15% of shares sold under the offering.

Funds from the financing, as per flow-through rules, will be used for Canadian exploration expenses, at both the firms flagship Queensway project in Newfoundland, as well as its Lucky Strike project in Ontario. Funds are to be used for exploration purposes before December 31, 2022.

The financing follows the recent news that the firm has been cleared to list on the New York Stock Exchange, which is expected to occur in the third quarter of 2021.

New Found Gold last traded at $10.11 on the TSX Venture.

Information for this briefing was found via Sedar and New Found Gold. 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.

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