New Found Gold's Outperform Rating, Price Target, Maintained By National Bank after $20 Million Deal for Kingsway Project
11:25 AM EDT, 04/23/2024 (MT Newswires) -- New Found Gold's (NFG.V) outperform rating and C$8.00 price target was reiterated by National Bank of Canada on Tuesday following the company's agreement to buy the Kingsway project in Newfoundland from Labrador Gold (LAB.V) for C$20 million in shares.
The bank said the transaction is at a relatively low cost considering that the transaction would nearly double the prospective strike length along the Appleton fault within New Found Gold's Queensway project.
The transaction is expected to close in the third quarter pending the approval of around 67% of Labrador Gold shareholders.
New Found is currently conducting a 650,000-meter drill program at Queensway.
New Found shares were last seen up C$0.12 to C$5.04 on the TSX Venture Exchange.
Price: 5.04, Change: +0.12, Percent Change: +2.44