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New Found Gold (TSXV: NFG) is raising C$56 million ($40.3m) to continue exploration and drilling at its Queensway high-grade gold project 15 km west of Gander, Newfoundland.
The property covers 1,662 km2 along two fault zones. High-grade targets have been identified along 9.5 km of the Appleton fault and 12.4 km of the JBP fault.
A syndicate of underwriters lead by BMO Capital Markets and Canaccord Genuity have agreed to buy, on a bought deal basis, more than 7.7 million charity flow-through shares of New Found at a price of C$7.25 per share.
The underwriters have been granted an additional 15% over-allotment, which, if exercised in full, would add approximately C$8.4 million more to the gross amount.
New Found is executing a 500,000-metre drill program at Queensway. Work has returned bonanza assays from several targets, including Monte Carlo, Keats, Iceberg, Lotto, Golden Joint. In fact, 17 zones have been identified along the Appleton fault.
The highest assay from this program was 430 g/t gold over 5.3 metres in the Golden Joint zone, and the longest was 35.4 metres that returned 106 g/t gold from the Keats Main zone.
No mineral resource estimate has yet been made for the Queensway project.
