VANCOUVER, British Columbia — New Found Gold Corp. (“New found) reports that on May 25, 2023 (“Day closed“), it gained control of 28,612,500 common shares (one per share, one “KirklandShare”) in the capital of Kirkland Lake Discoveries Corp. (“kirkland) is considered under the property purchase agreement of February 16, 2023, as amended May 8, 2023, between New Found and Kirkland. (the “Agreement“)
New Found entered into an Agreement with Kirkland on February 16, 2023, as amended on May 8, 2023, whereby New Found transferred to Kirkland 100% of its interest in Lucky Strike assets (“Asset”), excluding 1% of the smelter’s net royalties on output from Kirkland-issued Property to New Found. For consideration of the Assets, Kirkland has issued 28,612,500 Kirkland Shares to the New Found. Kirkland shares issued to New Found have a total value of C$5,722,500 or C$0.20. per Kirkland share.
As a result, New Found owns 28,612,500 Kirkland Shares (as disclosed by New Found in its May 25, 2023 early warning report). Prior to the issue of Kirkland Shares, New Found did not own or control any Kirkland Shares. Immediately following the issuance of Kirkland Shares, New Found owned and controlled a total of 28,612,500 Kirkland Shares, representing approximately 49.0% of the issued and outstanding Kirkland Shares.
Kirkland shares are purchased for investment purposes. In connection with the transaction, Denis Laviolette, President and director of New Found, has been elected director of Kirkland effective on Closing Date and New Found may nominate two more directors at a later date. Subject to the terms of the Agreement, New Found has agreed to use commercially reasonable efforts to distribute all Kirkland Shares it holds to New Found’s shareholders, pro rata, within one year after the End Date. In addition, New Found has agreed that, during this one-year period, it will not transfer any Shares of Kirkland except in connection with the distribution of such shares.
Kirkland shares are traded on the TSX Venture Exchange. Kirkland’s headquarters are located at 25 Adelaide Street East, Suite 1400, Toronto, Ontario, M5C 3A1.
This bulletin is issued under National Instrument 62-103 – Early warning system and issues related to acquisitions and internal reportingis also required to file reports under applicable securities laws (“Early warning report“). A copy of the Kirkland Early Warning Report can be found on the SEDAR website at www.sedar.com.
New referral found
New Found holds a 100% interest in the Queensway Project, located 15 km west of Gander, Newfoundland and Labrador and only 18 km from Gander International Airport. The project is intersected by the Trans-Canada Highway and features logging roads that cross the project, high-voltage power lines running through the project area, and easy access to a skilled workforce. New Found is currently running a 500,000m drilling program at Queensway and is well funded for the program with cash and marketable securities worth approximately $60 million as of May 2023.
To contact New Found, please visit New Found’s website, www.newfoundgold.ca and submit your request through our investor inquiry form. Our management is committed to contacting any investor inquiries within 24 hours.
This press release contains certain “forward-looking statements” within the meaning of Canadian securities laws regarding the nomination of directors to the board of directors of Kirkland and the distribution of Kirkland Shares to New York shareholders. Found. Although New Found believes such claims are reasonable, it cannot guarantee that such expectations will be proven true. Forward-looking statements are statements that are not historical facts; they are often, but not always, identified by the words “expect”, “plan”, “anticipate”, “believe”, “interpret”, “intend”, “estimate”, “project”, “target”, “proposed”, “say”, “regular”, “target”, “future”, “likely”, “pending”, “potential” capability”, “target”, “target”, “prospect”, “probable”, “preliminary”, and similar expressions, or that events or conditions “will”, “ will”, “could”, “could”, “could” or “should” happen, or such statements, in essence, refer to future events. New Found warns that forward-looking statements are based on the beliefs, estimates and opinions of New Found management as of the date the statements are made, and they involve a number of risks and uncertainties. sure. Therefore, there is no guarantee that such statements will prove to be accurate and factual results and that future events may differ significantly from what is anticipated in such statements. Except to the extent required by applicable securities laws and TSX Venture Exchange policies, New Found is under no obligation to update these forward-looking statements if a belief, estimate or opinion management or other factors change. Factors that may cause future results to differ significantly from those predicted in these forward-looking statements include the risks associated with possible accidents and other related risks. related to mineral exploration, the risk that New Found will encounter unforeseen geological factors, the risk associated with the interpretation of test results and the drilling program, the possibility that New Found may not secure the permits and other necessary government permits to execute New Found’s exploration plans, the risk that New Found will not be able to raise enough capital to carry out its business plans. plans and risks of political instability and regulatory or legal changes that may affect New Found’s business and prospects. Readers are encouraged to consult the Management Discussion and Analysis and the New Found Annual Information Form, which is publicly available through the Manager’s Electronic Document Retrieval and Analysis System. Canadian Stock Exchange (SEDAR) in www.sedar.com for a more complete discussion of such risk factors and their potential impacts.
See the source version on businesswire.com: https://www.businesswire.com/news/home/202305525005932/en/
Newly found gold corporation
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