New Found Gold Corp. has finalized a bought deal agreement with BMO Capital Markets and a syndicate of underwriters, including Canaccord Genuity Corp. As part of the agreement, the underwriters are set to acquire 7,725,000 charity flow-through common shares at a price of C$7.25 per share, which is projected to yield roughly C$56 million in gross proceeds. The underwriters have also been granted an option to purchase up to an additional 15% of the issued shares related to this deal, which can be exercised within a 30-day period following the closure of the offering.
The proceeds from this offering will be used to fund exploration and drilling activities at New Found Gold's Queensway project. Each share involved in this transaction is designated as a "flow-through share" under Subsection 66(15) of the Canadian Income Tax Act.
The offering is scheduled to close by November 6, 2023, pending regulatory approvals from authorities such as the TSX Venture Exchange and NYSE American. The shares will be offered via prospectus supplements across all Canadian provinces and territories, except Quebec, and in the U.S through New Found Gold's Form F-10 registration statement.
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