New Found Gold said it is now fully funded for the first phase of development at its Queensway gold project in Newfoundland and Labrador, positioning the company to target initial production by late 2027.
The announcement follows the company’s receipt of $70 million from Toronto-based investment firm EdgePoint, representing the first tranche of a larger $105 million financing package. Combined with a previously secured advance, the funding will support continued development at the Queensway project as well as commercial production activities at the company’s Hammerdown operation.
Chief Executive Keith Boyle said securing the financing marks a major milestone for the company as it advances toward construction and production. “With this key milestone complete, we are pleased to welcome EdgePoint as both a cornerstone investor and a valued partner in this next phase of development,” Boyle said, adding that the company will remain focused on disciplined execution over the coming year as Queensway moves closer to production.
As part of the agreement, New Found Gold issued EdgePoint approximately 2.49 million warrants priced at $3.30 per share, exercisable until May 2029. The company said that if the remaining $35 million portion of the financing is released, EdgePoint would receive additional warrants valued at approximately US$3 million.
The financing significantly reduces development risk for the Queensway project, which is expected to become one of Newfoundland and Labrador’s next major gold mining operations. With funding now secured, the company can shift its focus from capital raising to project execution at a time when strong gold prices continue to support investor interest in Canadian mining developments.
Source: https://www.canadianminingjournal.com/news/new-found-gold-secures-70m-loan-to-advance-queensway/