Strengthening Position in a Tier 1 Gold District
New Found Gold Corp. (TSXV: NFG; NYSE-A: NFGC), a Canadian-based gold exploration company, is making significant progress at its 100%-owned Queensway Gold Project in Newfoundland and Labrador — a Tier 1 mining jurisdiction with strong infrastructure and a skilled local workforce.
Strategic Sale of Maritime Notes Bolsters Balance Sheet
On April 14, 2025, the company sold its non-convertible senior secured notes of Maritime Resources Corp. for gross proceeds of approximately $2.78 million (US$2.0 million). This transaction supports New Found Gold’s financial flexibility as it advances exploration and development initiatives.
Definitive Agreement with Maritime Resources to Drive Scale
New Found Gold and Maritime have entered into a definitive agreement to combine, implying a total equity value of approximately $292 million on a fully diluted, in-the-money basis. The deal is expected to close in Q4 2025 and is set to:
- Unlock operational synergies between the two companies
- Provide near-term production and cash flow opportunities
- Enhance scale and visibility in the capital markets
This strategic combination positions the company for a stronger development and production profile over the coming quarters.
Channel Sampling Confirms High-Grade Gold Continuity
The company recently announced results from a channel sampling program at the Iceberg excavation in the AFZ Core area. The program demonstrated continuous, at-surface, high-grade gold mineralization across 185 metres — a key milestone ahead of Phase I custom milling outlined in the Queensway Preliminary Economic Assessment.
This work represents an important step in de-risking the Queensway Project, providing a stronger geological and operational foundation for development planning.
Management Incentives Aligned with Growth Objectives
New Found Gold has granted incentive stock options and restricted share units to its directors, officers, and employees. This move aims to align leadership’s interests with long-term shareholder value, while supporting ongoing exploration expansion and project advancement efforts.
Stock Outlook – Buy Rating
We maintain a Buy rating on New Found Gold Corp. (NFGC) at the closing price of USD 2.410 per share as on October 6 2025. This is underpinned by multiple growth drivers:
- Strategic Maritime transaction to unlock synergies and near-term production
- High-grade surface discoveries at Iceberg strengthening development potential
- Improved financial position through asset sales and disciplined capital management
- Tier 1 jurisdiction advantage providing infrastructure and skilled workforce benefits
- Aligned leadership incentives supporting effective execution of growth plans
Together, these catalysts support a bullish investment case, as New Found Gold transitions from explorer to emerging developer, with increasing market visibility and potential for a valuation re-rating.
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