New Found Gold Secures $205M Finance Package to Fund Queensway Phase I Development

• New Found Gold announced a $205 million finance package on April 20, 2026, comprising a $100 million bought deal equity financing at $2.96 per share and a $105 million senior secured credit facility with EdgePoint Investment Group to fund Queensway Phase I initial capital expenditures.
• The bought deal involves 33.8 million shares with a 15% over-allotment option, co-led by BMO Capital Markets and SCP Resource Finance LP, with lead orders from EdgePoint and cornerstone investor Eric Sprott.
• The credit facility advances in two tranches ($70 million Tranche 1 and $35 million Tranche 2) with an 8.75% fixed annual interest rate, a three-year term, 1% establishment fee, and 2% original issue discount.
• EdgePoint will receive non-transferable warrants valued at US$6 million exercisable at $3.30 per share for Tranche 1, and US$3 million for Tranche 2 at a 25% premium to the TSX Venture Exchange (TSXV) closing price on the funding date, all exercisable for three years.
• The bought deal is expected to close on or about April 27, 2026, subject to TSXV and NYSE American approvals, replacing the previously announced non-binding term sheet with Nebari Natural Resources Credit Fund II dated March 5, 2026.

Company Overview

New Found Gold (TSXV: NFG | NYSE American: NFGC) is a Canadian gold developer advancing two projects in Newfoundland and Labrador: the Queensway Gold Project and the Hammerdown Gold Project. The company completed a preliminary economic assessment (PEA) for Queensway in July 2025 and is targeting production at both assets. 

Finance Package Structure Targets Initial Capital for Queensway Phase I

New Found Gold announced on April 20, 2026, a $205 million finance package structured as a $100 million bought deal equity financing and a $105 million senior secured credit facility with EdgePoint Investment Group to fund initial capital expenditures for Queensway Phase I.

The bought deal involves 33.8 million shares priced at $2.96 per share, with BMO Capital Markets and SCP Resource Finance LP acting as co-lead underwriters. The company granted the underwriters a 15% over-allotment option exercisable for 30 days post-closing.

The credit facility advances in two tranches: $70 million in Tranche 1 upon delivery of security and satisfaction of conditions precedent, and $35 million in Tranche 2 at the company's discretion within 12 months of closing. Both tranches carry a 1% establishment fee, 8.75% fixed annual interest rate payable quarterly, and a three-year term, with principal amounts subject to a 2% original issue discount.

Warrant Issuance Linked to Credit Facility Drawdowns

The credit facility includes warrant issuances to EdgePoint tied to each tranche drawdown, subject to regulatory approvals from the TSX Venture Exchange (TSXV) and authorisation from the NYSE American. The Tranche 1 warrants carry an aggregate value of US$6 million, exercisable for 2,489,818 common shares at an exercise price of $3.30 per share. The Tranche 2 warrants carry an aggregate value of US$3 million, with the exercise price set at a 25% premium to the closing price of the common shares on the TSXV immediately preceding the Tranche 2 funding date. All warrants are non-transferable and exercisable for three years, subject to customary adjustment provisions.

All direct and indirect subsidiaries of New Found Gold will guarantee the credit facility, secured by first-lien security interests over all present and after-acquired real and personal property of the company and its guarantors. The proceeds from the credit facility will be used for general corporate and working capital purposes, including financing the development of the Queensway Gold Project and the ramp-up of the Hammerdown Gold Project.

EdgePoint & Eric Sprott Anchor Dual-Structure Finance Package

EdgePoint Investment Group participated as both the sole lender on the senior secured credit facility and the co-lead underwriter on the bought-deal equity financing. Cornerstone investor Eric Sprott contributed lead orders to the equity component.

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

"We are pleased to announce this comprehensive finance package, consisting of an at-market equity bought deal financing and a senior secured credit facility at superior terms to those previously contemplated. With today's announcement, we have secured funding for the initial capital expenditures required to bring our flagship Queensway Gold Project-Phase I into production, in line with our development schedule. The participation of EdgePoint as the underwriter of the credit facility, as well as co-lead on the equity component of this finance package, is a testament to the quality of the Queensway asset and the Company's ability to deliver on its mandate of getting to cash flow."

Chief Investment Officer of EdgePoint, Frank Mullen, stated:

"We are excited to partner with the New Found Gold team in the development of Queensway. This opportunity aligns with our strategy of investing in assets that demonstrate compelling economics in attractive mining jurisdictions. Queensway is uniquely positioned for near-term cash flow via a rapid path to production with excellent exploration upside potential, which should translate into attractive project economics."

The company will not proceed with the secured loan facility and the warrant issuance contemplated in the non-binding term sheet with Nebari Natural Resources Credit Fund II, announced on March 5, 2026.

Offering Mechanics & Next Steps

The common shares will be offered in all provinces and territories of Canada, excluding Quebec and Nunavut, via a prospectus supplement to the company's short-form base shelf prospectus dated May 23, 2025. The shares will also be offered in the United States via a prospectus supplement forming part of the company's registration statement on Form F-10.

The bought deal equity financing is expected to close on or about April 27, 2026, subject to regulatory approvals from the TSX Venture Exchange and authorisation from NYSE American. The credit facility Tranche 1 will be funded upon delivery of the security package and satisfaction of conditions precedent, with Tranche 2 available at the company's discretion within 12 months of closing.

Cutfield Freeman & Co. is acting as financial advisor to the company on the credit facility and overall project finance strategy. Blake, Cassels & Graydon LLP is acting as legal counsel to the company, and Miller Thomson LLP is acting as legal counsel to EdgePoint.

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