VANCOUVER, BC, March 18, 2021 /CNW/ - New Found Gold Corp. ("New Found" or the "Company") (TSXV: NFG) (OTC: NFGFF) is pleased to announce a non-brokered private placement of 2,857,000 common shares of the Company that qualify as "flow-through shares" for the purposes of the Income Tax Act (Canada) (the "FT Shares") at a price of $5.25 per FT Share (the "Financing"), for gross proceeds to New Found of $14,999,250. Mr. Eric Sprott is purchasing a total of 2,857,000 shares as a result of the Financing. The FT Shares have a hold period of four months and one day from closing. On closing, a cash finders' fee equal to 3.5% of the gross proceeds of the Financing will be paid to Clarus Securities Inc.
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The gross proceeds from the issuance of the FT Shares will be used for "Canadian exploration expenses" and will qualify as "flow-through mining expenditures" (the "Qualifying Expenditures"), as those terms are defined in the Income Tax Act (Canada), which will be renounced to the initial purchasers of the FT Shares with an effective date no later than December 31, 2021 in an aggregate amount not less than the gross proceeds raised from the issue of the FT Shares, and, if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each initial purchaser of FT Shares for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the Qualifying Expenditures as agreed. Closing of the financing is subject to customary conditions including finalization of definitive documentation and approval of the TSX Venture Exchange.
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