New Found Gold Corp. Enters into Royalty Purchase Agreements for Queensway Project
New Found Gold Corp. has announced that it has entered into three royalty purchase agreements with arms length royalty holders, where the company will purchase part of each Vendors royalty interest. The Royalty Purchase Agreements involve the purchase of 0.6% of the Vendors 1.6% net smelter returns royalty on the Companys Golden Bullet property. The Company will pay $650,000 cash consideration and issue 100,000 common shares to each Vendor as part of the agreement.
The funding will be used to further develop the Golden Bullet property, covering key target areas on the Queensway Project, including the extension of Keats South and several other notable zones along a 5km segment of the Appleton Fault. New Found also has the right to purchase the remaining 1% net smelter returns royalty from the Vendors for an aggregate price of $1,000,000 by 2024.
Greg Matheson, COO of New Found, highlighted the significance of this transaction in reducing royalty burdens on the project and maximizing future potential. The company aims to remove all royalties by exercising its right to buy back the remaining NSR, ensuring a strong position to advance the Queensway Project.
The Royalty Purchase Agreements are subject to customary closing conditions, including regulatory approvals from the TSX Venture Exchange and NYSEAmerican. All securities issued will be subject to a hold period, and the securities have not been registered under the U.S. Securities Act.
