- New Found Gold (TSXV:NFG/NYSE American:NFGC) signed a non-binding term sheet for an up to US$75 million loan facility, keeping it on track to advance its flagship Queensway project in Newfoundland and Labrador to initial production in 2027
- The near-term gold producer also owns the past-producing Hammerdown deposit, yielding 291,400 tons averaging 15.83 g/t gold for 143,000 ounces
- New Found Gold stock has added 39.68 per cent year-over-year but remains down by 10.43 per cent since 2021
New Found Gold (TSXV:NFG/NYSE American:NFGC) signed a non-binding term sheet for an up to US$75 million loan facility, keeping it on track to advance its flagship Queensway project in Newfoundland and Labrador to initial production in 2027.
Queensway boasts a more than 110-km strike length and a 2025 preliminary economic assessment (PEA) detailing 1.5 million ounces of production over a 15-year mine life.
Key tasks to be covered by the loan include the procurement of long lead items, early construction activities, as well as upgrading and expanding the 100-per-cent-owned Pine Cove Mill to accommodate phase 1 milling.
New Found Gold will receive US$50 million upon closing, contingent on certain conditions, with the remaining US$25 million available to be drawn no later than 15 months after closing. Interest is set at 9.25 per cent annually over a two-year term, extendable by six months at the company’s option, with the capital to be secured by first-lien interests over all subsidiaries’ real and personal property,
In connection with the loan, New Found Gold will issue non-transferrable warrants to Nebari Natural Resources Credit Fund II valued at US$5.625 million, which may be exercised at a 25 per cent premium over a two-year term.
The loan remains subject to a definitive agreement.
Management commentary
“We are pleased to enter into the term sheet for this debt financing, which will support phase 1 of our flagship Queensway gold project and enable us to remain on track with the development timeline outlined in our 2025 PEA,” Keith Boyle, chief executive officer of New Found Gold, said in Thursday’s news release. “Once the loan facility is in place, we will be well capitalized as we advance towards a formal construction decision later this year, taking us closer to production at Queensway, which showcases a solid low-cost production profile via a phased mine plan, near-term cash flow generation and significant upside through exploration, as we aim for first production in late 2027.”
About New Found Gold
New Found Gold is a Canadian near-term gold producer active in Newfoundland and Labrador. Besides Queensway, the company owns the past-producing Hammerdown deposit – 291,400 tons averaging 15.83 g/t gold for 143,000 ounces – including fully permitted milling and tailings facilities.
New Found Gold stock (TSXV:NFG) last traded at C$3.52. The stock has added 39.68 per cent year-over-year but remains down by 10.43 per cent since 2021.
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