New Found Gold Closes C$70 Million Initial Draw Under EdgePoint Credit Facility to Fund Queensway & Hammerdown Development

New Found Gold has received C$70 million in initial funding from EdgePoint Investment Group Inc. under the previously announced C$105 million senior secured credit facility. The funding, combined with the C$115 million raised in the recently completed bought deal financing, provides full funding to advance the Queensway Gold Project Phase 1 development and construction through to production in late 2027, in line with the company's development timeline. The transaction included the issuance of 2,489,818 non-transferable warrants with an aggregate value of US$6 million, exercisable at C$3.30 per common share until May 15, 2029. An additional C$35 million second tranche remains available at the company's discretion within 12 months, subject to satisfaction of conditions precedent, including TSX Venture Exchange (TSXV) approval and New York Stock Exchange (NYSE) American authorisation.

Company Overview

New Found Gold Corp. [TSXV: NFG | NYSE American: NFGC] is an emerging Canadian gold producer with assets in Newfoundland and Labrador, Canada. The company holds a 100% interest in the Queensway Gold Project and the Hammerdown Gold Project, which includes the Hammerdown deposit and Pine Cove milling and tailings facilities. The company is currently focused on advancing Queensway to production and bringing Hammerdown into commercial gold production.

Tranche 1 Funding Structure & Terms

EdgePoint advanced the C$70 million Tranche 1 funds following delivery of the security package and satisfaction of conditions precedent under the credit agreement executed on April 20, 2026. The advance reflects a principal amount subject to an original issue discount of 2.00%. In connection with the Tranche 1 advance, New Found Gold issued 2,489,818 non-transferable warrants to EdgePoint and its nominees. Each Tranche 1 warrant entitles the holder to purchase one common share at an exercise price of C$3.30 per share, subject to customary adjustment provisions. The Tranche 1 warrants are exercisable until May 15, 2029 and are subject to a statutory hold period of 4 months and one day under applicable Canadian securities laws, expiring on September 16, 2026. The Tranche 1 funds will be used for general corporate and working capital purposes, including financing for the development of the Queensway Gold Project and bringing the Hammerdown Gold Project into commercial production.

Full Funding Position for Phase 1 Development

The receipt of the C$70 million Tranche 1 funding establishes New Found Gold's full funding position to advance Queensway Phase 1 development and construction and bring the project into production in late 2027. 

Chief Executive Officer and Director of New Found Gold, Keith Boyle, stated: 

"Following the receipt of the $70M Tranche 1 funding, together with the $115M raised in the recently completed oversubscribed bought deal financing, we are now fully funded to advance Queensway Phase 1 development and construction and bring the project into production in late 2027, in line with our development timeline.”

He added:

“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. Over the course of the next year, the Company will remain focused on disciplined execution as we advance Queensway toward production."

Tranche 2 Availability & Regulatory Disclosures

The advance of the C$35 million Tranche 2 funds and the corresponding issuance of non-transferable warrants with an aggregate value of US$3 million remain at New Found Gold's discretion. Tranche 2 funding is available no later than 12 months after the Tranche 1 drawdown date. It is subject to the satisfaction of further conditions precedent, including approval of the TSX Venture Exchange (TSXV) and authorisation of the New York Stock Exchange (NYSE) American.

New Found Gold disclosed that the audit report issued by the company's independent registered public accounting firm in connection with the company's Annual Report on Form 40-F for the fiscal year ended December 31, 2025, contained a going concern qualification and an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern. The company's Annual Report on Form 40-F for the fiscal year ended December 31, 2025, was filed with the US Securities and Exchange Commission on March 25, 2026. The announcement was made to comply with Sections 401(h) and 610(b) of the NYSE American Company Guide and does not represent any change or amendment to the Annual Report.

Transaction Advisors

Cutfield Freeman & Co. Ltd., an independent global mining finance advisory firm, acted as financial advisors to New Found Gold in relation to the credit facility and the company's overall project finance strategy. Blake, Cassels & Graydon LLP acted as legal counsel to New Found Gold. Miller Thomson LLP acted as legal counsel to EdgePoint.

Next Steps

New Found Gold will focus on disciplined execution over the next year as it advances Queensway toward production in late 2027. The company retains the option to draw the C$35 million Tranche 2 funds within 12 months of the Tranche 1 drawdown date, subject to satisfaction of conditions precedent, including TSXV approval and NYSE American authorisation. The company continues to advance Queensway Phase 1 development and construction and the Hammerdown Gold Project toward commercial production.