New Found Gold Secures $75M Debt Facility for Low-Capex Queensway Development

• New Found Gold signed a term sheet for up to $75 million USD debt financing to advance its Queensway Gold project toward production by end of 2027
• Phase 1 capital expenditure estimated at $155 million CAD, with the debt facility covering approximately two-thirds of required funding for fast-tracked development
• Project economics target average production of 69,000 ounces over four years, with potential for 100,000 ounces annually in initial years at $1,300 all-in sustaining costs
• Company to submit environmental assessment permit in April 2026, expecting expedited 45-day approval process similar to recent regional precedents
• Hammerdown operation ramping to steady-state production in first half of 2026, utilising permitted Pine Cove Mill infrastructure to generate near-term cash flow

New Found Gold announced a significant milestone in its development trajectory with the signing of a term sheet for up to $75 million USD in debt financing. This strategic capital raise addresses a critical component of the company's plan to advance its flagship Queensway Gold project in Newfoundland, Canada, toward production by the end of 2027. The financing package represents a carefully structured approach to development capital, designed to maintain project momentum while preserving shareholder value during a period of elevated gold prices.

Securing Project Financing

The debt facility emerged from a competitive process that generated multiple proposals from interested lenders. CEO Keith Boyle characterised the selected terms as a favorable outcome, particularly given the relatively short two-year duration with an optional six-month extension. The financing structure aligns with the company's accelerated development timeline, providing capital for long-lead equipment orders, early construction works, and detailed engineering activities required to maintain the project schedule.

According to the preliminary economic assessment released in July 2025, the initial capital expenditure for Phase 1 of Queensway totals approximately $155 million Canadian, equivalent to just over $100 million USD. The secured debt facility therefore covers a substantial portion of the required development capital, positioning the company to advance construction activities without immediate equity dilution.

Queensway Project Economics

The economic proposition underlying the Queensway project centers on robust production targets and competitive cost structures. The preliminary economic assessment projects average annual production of 69,000 ounces over a four-year mine life, with higher-grade material in the initial production years potentially delivering approximately 100,000 ounces annually. These production rates, combined with all-in sustaining costs estimated at $1,300 per ounce, create significant cash flow potential in the current price environment.

Boyle noted that at today's prices, you're looking at $400 million Canadian free cash flow over the project's life. This substantial cash generation capability underpins the investment thesis and provides a clear pathway to debt retirement and potential returns to shareholders. The relatively modest capital intensity relative to production levels distinguishes Queensway from many peer development projects in the gold sector.

Path to Production Timeline

The company maintains an aggressive development schedule targeting commercial production by the end of 2027. This timeline requires coordination across multiple workstreams, including permitting, engineering, procurement, and construction activities. The recently secured financing enables immediate advancement of critical path items, particularly long-lead equipment orders that often constrain project schedules.

New Found Gold benefits from existing infrastructure in the region, notably the permitted Pine Cove Mill, which will process material from Queensway. This infrastructure advantage reduces both capital requirements and permitting complexity compared to greenfield developments requiring complete processing facilities. The company's parallel operation at Hammerdown, which is ramping to steady-state production in the first half of 2026, provides operational experience and near-term cash generation that further de-risks the Queensway development.

Interview with Keith Boyle, CEO, New Found Gold

Permitting Progress and Regulatory Environment

Environmental permitting represents a critical milestone on the path to production. New Found Gold expects to submit its environmental assessment permit application in April 2026. The regulatory environment in Newfoundland and Labrador has demonstrated efficiency in recent permitting processes, with the province's economic development priorities aligned with resource sector expansion.

Boyle referenced the recent Firefly precedent, where environmental assessment approval was completed in 45 days, as an indication of potential timeline expectations. While each project undergoes individual evaluation, the provincial government's demonstrated support for mining development provides confidence in timely regulatory progression. Beyond the environmental assessment, additional permitting requirements must be satisfied, though management expresses confidence in the sequential advancement of these approvals.

Debt Management Strategy

The company's approach to capital structure reflects both near-term financing needs and longer-term optimisation objectives. While the current debt facility addresses immediate development requirements, management anticipates refinancing opportunities once Queensway achieves production and demonstrates cash flow generation. Boyle explained the strategic rationale: it's always good to have some debt on the books as a producer, noting that refinancing with a non-recourse bank facility would provide both lower cost capital and operational flexibility.

This staged approach to capital structure allows New Found Gold to access development financing at terms appropriate to its pre-production risk profile, while positioning for more favorable banking relationships once operational cash flows are established. The anticipated refinancing would likely extend repayment terms and reduce interest costs, enhancing overall project returns.

Hammerdown Contribution and Near-Term Cash Flow

The Hammerdown operation provides a complementary element to the company's development strategy. As this existing operation ramps to steady-state production in the first half of 2026, it will generate cash flow that supplements the company's financial position during Queensway construction. This near-term production, benefiting from current gold prices, reduces reliance on external capital and demonstrates operational execution capability that may support future financing activities.

The Hammerdown ramp-up also validates the company's ability to operate the Pine Cove Mill efficiently, providing important operational readiness for the larger-scale Queensway production. This operational track record becomes increasingly relevant as the company approaches production decisions and seeks to demonstrate execution capability to investors and potential financing partners.

Outlook and Execution Focus

New Found Gold's strategic priorities center on maintaining development momentum while managing capital efficiency. The company's extensive property package in Newfoundland offers exploration upside beyond the current mine plan, though near-term focus remains on achieving production at Queensway. Management's characterisation of project progression reflects confidence in execution: everything's unfolding the way it should, the way we've laid it out.

The convergence of secured financing, advancing permitting, and operational readiness positions the company to execute its fast-track development strategy through 2027. Success in this execution will determine whether New Found Gold transitions from an explorer and developer into a significant gold producer with substantial cash generation capacity.