Exploits Discovery to divest Newfoundland mineral claims to New Found Gold

Exploits Discovery has finalised a property purchase agreement with New Found Gold (NFG) for the sale of a 100% interest in its central Newfoundland mineral claims.

The transaction, excluding certain disputed claims, involves 1,984 mineral claims, totalling 49,600ha.

The sale will enable Exploits Discovery to concentrate on advancing its new gold projects in Ontario and Québec.

Under the agreement, NFG will issue C$7m ($5m), equivalent to 2,821,556 NFG shares, and grant a 1% net smelter returns royalty (NSR) on select claims.

An additional C$1.8m in shares, equivalent to 725,543 NFG shares, is contingent on a positive legal outcome for disputed claims.

The shares will be subject to a four-month resale restriction post-closing. NFG also retains the option to repurchase part of the royalty for C$750,000 within three years.

Exploits president and CEO Jeff Swinoga said: “This is an excellent transaction for our shareholders, providing up to approximately $8.8m of value along with a 1% NSR.

“It provides immediate value, ongoing exposure to NFG's discovery success, and adds royalty upside, allowing us to accelerate development on our new growth platform of growing gold ounces in Ontario and Québec.”

The transaction requires approval from Exploits' shareholders, with a two-thirds majority needed, and is subject to customary closing conditions including regulatory approvals.

The anticipated closing is in the fourth quarter of 2025. Exploits has agreed to customary non-solicitation covenants and has the benefit of fiduciary-out provisions.

In the event of a superior proposal, NFG has the right to match within five business days.

If Exploits accepts a superior proposal, it must pay NFG a termination fee of C$250,000.

New Found Gold CEO Keith Boyle said: “The acquisition of these additional highly prospective landholdings in and around Queensway is the next step in building a district-scale land package in central Newfoundland.

“With this acquisition, New Found Gold will control a key claim block immediately adjacent to the AFZ Core, where we recently announced the results of a positive preliminary economic assessment. In addition, we will add a further 20km of strike extent along the main structures that control gold mineralisation at Queensway.”

This sale follows NFG’s recent move to acquire Maritime Resources, with the combined transaction valued at approximately C$292m.

"Exploits Discovery to divest Newfoundland mineral claims to New Found Gold" was originally created and published by Mining Technology, a GlobalData owned brand.

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