New Found Gold to acquire Maritime Resources, creating emerging Canadian gold producer

[Gold nuggets against black background]
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New Found Gold (NYSE:NFGC [https://seekingalpha.com/symbol/NFGC]) +5.8% pre-market Friday after saying it agreed to acquire [https://seekingalpha.com/pr/20222614-new-found-gold-and-maritime-enter-into-definitive-agreement-to-combine-combination-creates-an] Maritime Resources (OTCPK:MRTMF [https://seekingalpha.com/symbol/MRTMF]), which owns the Hammerdown gold project in Newfoundland that is expected to ramp up to full production in early 2026, for an implied equity value of C$292M.

New Found Gold's (NYSE:NFGC [https://seekingalpha.com/symbol/NFGC]) Queensway gold project, which delivered a positive preliminary economic assessment earlier this year and is targeting phase 1 production in 2027, also is located in Newfoundland, and the combined company is expected to create significant operational synergies through available infrastructure and anticipated cash flow from Hammerdown once in full production to support Queensway's development.

Under the deal terms, each Maritime (OTCPK:MRTMF [https://seekingalpha.com/symbol/MRTMF]) shareholder will receive 0.75 of a New Found Gold common share (NFGC [https://seekingalpha.com/symbol/NFGC]) in exchange for each Maritime share; at closing, existing New Found Gold and Maritime shareholders will own ~69% and 31%, respectively, of the pro forma company on a fully diluted basis.

MORE ON NEW FOUND GOLD

* New Found Gold: Queensway's Path To Unearthing Value [https://seekingalpha.com/article/4818214-new-found-gold-stock-queensways-path-to-unearthing-value]
* New Found Gold: Buying Underground Gold For Pennies On The Dollar [https://seekingalpha.com/article/4774957-new-found-gold-stock-buying-underground-gold-for-pennies-on-dollar]
* Financial information for New Found Gold [https://seekingalpha.com/symbol/NFG:CA/income-statement]