New Found Gold to expand Queensway project with property acquisition

Published 08/09/2025, 12:06
New Found Gold to expand Queensway project with property acquisition

VANCOUVER - New Found Gold Corp. (TSXV:NFG) (NYSE-A:NFGC), a mining company with a market capitalization of $7.82 billion and impressive year-to-date returns of 44.5%, announced Monday it has entered into a property purchase agreement with Exploits Discovery Corp. (CSE:NFLD) to acquire mineral claims in Newfoundland and Labrador that would expand its Queensway Gold Project by 33%. According to InvestingPro data, the company maintains a "GOOD" financial health score, suggesting strong operational fundamentals.

The acquisition would add 58,600 hectares to New Found Gold’s holdings, bringing the total project size to 234,050 hectares. The claims adjoin the existing Queensway project and extend along 20 kilometers of strike on key gold-bearing structures.

As consideration for the claims, New Found Gold will issue 2,821,556 common shares to Exploits, grant a 1% net smelter returns royalty, and issue an additional 725,543 shares following court determination regarding certain disputed mineral claims.

The transaction requires approval from two-thirds of Exploits shareholders and regulatory clearance from the TSX Venture Exchange, NYSE American, and Canadian Securities Exchange. Closing is expected in the fourth quarter of 2025.

The agreement includes standard deal protections including a non-solicitation provision, matching rights for superior proposals, and a C$250,000 termination fee payable by Exploits in certain circumstances. Directors, officers, and shareholders controlling approximately 15% of Exploits shares have agreed to support the transaction.

New Found Gold retains an option to purchase half of the royalty for C$750,000 within three years of the agreement.

The company recently completed a preliminary economic assessment for the Queensway project, according to the press release statement. New Found Gold’s largest shareholder is Eric Sprott, who holds approximately 23.1% of the company. Analyst consensus from InvestingPro shows optimistic targets ranging from $89 to $107 per share, with comprehensive analysis available in the Pro Research Report, which offers detailed insights into the company’s valuation and growth prospects. The stock currently trades near its 52-week high, reflecting strong market confidence in the company’s expansion strategy.

In other recent news, National Fuel Gas Company reported its third-quarter earnings for fiscal year 2025. The company achieved an earnings per share of $1.64, surpassing analyst expectations of $1.53. However, its revenue did not meet projections, coming in at $531.83 million against the anticipated $599.31 million. Meanwhile, New Found Gold Corp. announced an average 89.2% gold recovery from its Phase III Metallurgical Testing Program at the Queensway Gold Project. This result confirmed the recovery rates used in the company’s preliminary economic assessment. Additionally, New Found Gold appointed Tamara Brown to its board of directors. Shareholders approved the creation of Eric Sprott as a new "Control Person," pending the closing of a private placement. The placement involves up to 12,269,939 common shares, expected to close by late August, subject to regulatory approvals.

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