New Found Gold to expand Queensway project by a third with property acquisition

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NewFound Gold (NYSE:NFGC [https://seekingalpha.com/symbol/NFGC]) +6.7% in early trading Monday after saying it agreed to acquire [https://seekingalpha.com/pr/20223739-new-found-gold-expands-queensway-gold-project-enters-into-property-purchase-agreement-to] mineral claims in Newfoundland and Labrador from Exploits Discovery (OTCQB:NFLDF [https://seekingalpha.com/symbol/NFLDF]) that would expand its Queensway gold project by as much as one third to a total of ~234K hectares.

The claims adjoin the existing Queensway project and extend along 20 km of strike on key gold-bearing structures, the company said.

As consideration for the claims, New Found Gold (NYSE:NFGC [https://seekingalpha.com/symbol/NFGC]) said it will issue more than 2.82M common shares to Exploits (OTCQB:NFLDF [https://seekingalpha.com/symbol/NFLDF]), grant a 1% net smelter returns royalty, and issue an additional ~725K shares following a final determination by the Supreme Court of Newfoundland and Labrador regarding certain disputed mineral claims.

New Found Gold (NFGC [https://seekingalpha.com/symbol/NFGC]) recently completed a preliminary economic assessment for the Queensway project, which it said reinforced its belief [https://seekingalpha.com/news/4470191-new-found-gold-hits-four-month-high-after-posting-first-queensway-economic-assessment] that the project can become a low-cost, high-margin, cash flow generating mine.

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]