New Found Gold Corp V.NFG

NFG has filed PROSPECTUS SUPPLEMENT on Sedar

[Kewl002]

PROSPECTUS SUPPLEMENT to the Short Form Base Shelf Prospectus dated July 27, 2021 for $50,002,100 = 4,390,000 Flow-Through Shares.

As always these documents are long and filled with legalize but there is usually something new and interesting to be found buried in the belly of these agreements. The following points seemed interesting to me -- perhaps you will find something different if you take the time to review it.

* The main business objectives the Company intends to accomplish with the proceeds of the Offering are to continue drilling of existing and new targets at the Queensway Project and to establish a maiden resource estimate. The main objective at the Lucky Strike Project is to complete an initial drill program. Proceeding with this drill program at the Lucky Strike Project is
subject to further geological evaluation of this project by the Company. The Company expects to complete these main business objectives on or before December 31, 2022. 

* The Company estimates that the total expenses of the Offering, excluding the Underwriting Commission and assuming no exercise of the Over-Allotment Option, will be approximately $500,000. (not including commissions)

* The net proceeds to the Company from the Offering will be approximately $47,001,995 (or approximately $54,127,294 if the Over-Allotment Option is exercised in full), after deducting payment of the Underwriting Commission in the amount of $2,500,105 (or $2,875,121 if the Over-Allotment Option is exercised in full) and the estimated expenses of the Offering of $500,000 by Company from its general funds. 

* The Company understands that the purchasers of the Offered Shares may subsequently choose to (i) donate such Offered Shares to registered charitable organizations, who may in turn choose to sell such Offered Shares to purchasers arranged by the Underwriters at a price of $8.50 per Secondary Share (the “Re-Offer Price”); or (ii) sell such Offered Shares to purchasersarranged by the Underwriters at the Re-Offer Price (the “Secondary Shares”). The Company will not be a party to any such arrangements. This Prospectus Supplement qualifies the issuance of the Offered Shares as well as the distribution of the Secondary Shares. 

* Warrants and options that have been exercised over the past 12 months are documented in detail up to August 8, 2021.

* Options that have been granted over the past 12 months are summarized by pricing.

* The SP range and trading volume for each of the past 12 months is documented.

REPORT IS FILED at www.sedar.com

[AUSTIN48]

secondary purchaser for 8,50 WTF.???

[Kewl002]

Am pretty sure it works something like this: 1) Deep pockets buys the flow thru shares @$11.48 2) Donates them to a charity       ---- gets the Cdn charitable donation tax write-off 3) Charity strips the flow thru share of the tax benefits       ---- above my pay grade on how specifically this works but assume they make money 4) Sell the basic share (now normalized

[NLhammer]

The buyer of the share gets to write-off the "exploration expense" on taxes.... Flow-through shares Franais   An overview for mining executives

[Global1966]

Not clear why the market price has fallen to the current price. Are the 4 million shares sold on market to the lucky buyers at $8.50?

[Global1966]

What is The Lucky Strike Project?

[diabase1]

This is the Lucky Strike property. https://mms.businesswire.com/media/20210803005449/en/895826/5/Map_NR.jpg?download=1

[rummager]

Thanks for doing the grunge work on that. Your highlights are encouraging.