New Found Gold Corp. announced the Company has successfully completed its previously announced acquisition (the "Acquisition") of a 100% interest in certain mineral claims in Newfoundland and Labrador previously held by Exploits Discovery Corp. ("Exploits") (the "Claims").
The Claims adjoin New Found Gold's Queensway Gold Project ("Queensway" or the "Project") and increases the size of the Project by up to 31%, to a total of 230,225 hectares. As consideration for the Claims, the Company (i) issued 2,821,556 common shares of the Company (the "Shares") to Exploits; (ii) granted to Exploits a 1% NSR Royalty (as defined below); and (iii) within 10 business days following a positive final determination by the Supreme Court of Newfoundland and Labrador with respect to certain disputed mineral claims, will issue 725,543 Shares to Exploits ("the "Contingent Shares"). As partial consideration for the Claims, the Company granted to Exploits a 1.0% net smelter returns royalty on certain of the mineral claims (the "NSR Royalty") on the products derived from certain of the mineral licenses forming part of the Claims pursuant to a royalty agreement (the "Royalty Agreement").
For three years from the date of the Royalty Agreement, New Found Gold retains the right and option to purchase 0.5% of the NSR Royalty for a price equal to CAD 750,000.
