Gold Co. Acquires Remaining Royalty Interests at Newfoundland Project

Gold Co. has made a significant move by purchasing the remaining royalty interests at its Golden Bullet property in Newfoundland. This acquisition positions the company favorably as it continues to explore and develop its Queensway Project, which has shown promising mineralization results.

Key Takeaways

• New Found Gold Corp. (NFG) has acquired the remaining 1% of the net smelter return (NSR) royalty on its Golden Bullet property for CA$1 million.
• The Golden Bullet property is crucial for the Queensway Project, covering key target areas including the Keats South zone.
• Analysts express optimism about NFG's exploration success and the potential for significant gold discoveries.

Acquisition Details

New Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American) announced the purchase of the remaining royalty on its Golden Bullet property from three arms-length royalty holders. Previously, New Found had acquired 0.6% of the vendors' 1.6% NSR royalty and now has opted to buy the remaining 1% for a total cash consideration of CA$1 million.

Chairman and CEO Collin Kettell stated, "New Found finds itself in a rare and strong position with a minimal outstanding royalty burden, ranging from 0% to 0.4%, covering key zones along the Appleton North corridor."

Exploration Success

The Golden Bullet property is part of the Queensway Project, which has recently seen significant exploration success. Roth MKM analyst Mike Niehuser noted that NFG has exceeded expectations in its exploration programs, particularly along the 9.5 km Appleton Fault. The company has made notable discoveries, including:

• 300 grams per tonne gold (g/t Au) over 5.10 meters
• 215 g/t Au over 5.21 meters
• 38.9 g/t Au over 16.60 meters
• 13.4 g/t Au over 26.60 meters
• 10.4 g/t Au over 13.70 meters
• 27.7 g/t Au over 6.55 meters

These results confirm the continuity of high-grade mineralization and demonstrate the broad distribution of gold across the property.

Market Outlook

Gold prices have recently surged, hitting a record high of US$2,685.42 in September. Experts believe that the bull market for gold is just beginning, with Goldman Sachs raising its forecast for early 2025 to US$2,900 per ounce. The current price stands at US$2,663 per ounce, driven by factors such as:

• U.S. Federal Reserve's monetary easing cycle
• Geopolitical tensions in the Middle East
• Increased consumer demand for gold, particularly from retailers like Costco

Ownership Structure

New Found Gold Corp. has a diverse ownership structure:

• Management and insiders hold about 5% of the company.
• Strategic investors own approximately 39%, including:
  • Palisades Goldcorp Ltd. (21.82%)
  • Sprott Mining Inc. (12.22%)
  • 2176423 Ontario Ltd. (5.24%)
• Institutional investors hold around 4%, with Van Eck Associates Corporation being the largest at 2.68%.

The company has 198.84 million shares outstanding and a market cap of CA$664.12 million, trading within a 52-week range of CA$3.19 to CA$6.30.

This acquisition and the ongoing exploration efforts at the Queensway Project position New Found Gold Corp. as a key player in the gold mining sector, with promising prospects for future growth and discovery.

Sources

• Gold Co. Buys Remaining Royalty Interests at Newfoundland Project, www.streetwisereports.com.