Toronto, Ontario — March 5, 2026 — Leads & Copy — New Found Gold Corp. (TSXV: NFG) (NYSE American: NFGC) has entered a non-binding term sheet for a loan facility of up to US$75,000,000.
The company intends to use the proceeds from the Loan Facility to finance the development of its Queensway Gold Project in Newfoundland and Labrador, Canada. This includes procuring long lead items, initiating early construction, upgrading and expanding the company’s Pine Cove Mill for Queensway Phase 1 off-site milling, and for general working capital.
The Loan Facility, alongside cash flow from the Hammerdown Gold Project, is part of the company’s overall finance strategy.
According to Keith Boyle, CEO of New Found Gold, the debt financing will support Phase 1 of the Queensway Gold Project and maintain the development timeline outlined in the company’s 2025 PEA. He said that once the Loan Facility is in place, the company will be well capitalized as it advances towards a formal construction decision later this year, with the aim of achieving first production in late 2027.
The Loan Facility will be documented by a senior secured debenture and advanced in two tranches: US$50,000,000 at closing (Tranche 1), and an additional US$25,000,000 (Tranche 2) no later than 15 months after closing, subject to certain conditions and if required by the company. Both tranches will be subject to customary arrangement fees.
The Loan Facility will bear interest at a fixed annual rate of 9.25%, payable quarterly in arrears, with a term of 24 months. There will also be a quarterly administration fee based on a fixed annual fee of 0.50%. The company has the option to extend the term by an additional six months. The funds to be advanced reflect principal amounts subject to an original issue discount, which will increase if the term is extended.
Subject to TSXV approval, New Found Gold will issue non-transferable warrants to the Lender, Nebari Natural Resources Credit Fund II, LP, at closing. The warrants issued in connection with Tranche 1 will have an aggregate value of US$3,750,000, and the warrants issued in connection with Tranche 2 will have an aggregate value of US$1,875,000. Each warrant will be exercisable for one common share of the company at an exercise price equal to a 25% premium to the lower of the volume weighted average price of the common shares of the company on the TSXV for the 20 trading days prior to (a) the date hereof, and (b) the date the warrants are issued, provided that the exercise price will not be below the market price as determined by the TSXV. The warrants will be exercisable for a period of 24 months following closing. If the company extends the term of the loan by an additional six months, the expiration date of the warrants will also be extended by six months if permitted by the TSXV.
All direct and indirect subsidiaries of the company will guarantee the Loan Facility, which will be secured with first-lien security interests over all of their present and after-acquired real and personal property.
The provision of the Loan Facility is subject to customary conditions precedent, including the negotiation, execution, delivery and registration of definitive financing documents, completion of due diligence to the Lender’s satisfaction, receipt of all necessary corporate and regulatory approvals (including TSXV approval), and approval by the Lender’s Investment Committee. The term sheet includes a mutual break fee in the event of a termination by either party prior to closing.
Cutfield Freeman & Co. Ltd. is acting as financial advisors to New Found Gold in relation to the Loan Facility and its overall project finance strategy.
New Found Gold is an emerging Canadian gold producer with assets in Newfoundland and Labrador, Canada, holding a 100% interest in Queensway and Hammerdown, which includes the Hammerdown deposit and fully permitted milling and tailings facilities.
The company completed a PEA at Queensway in July 2025. Recent drilling continues to yield new discoveries along strike and down dip of known gold zones. Through 2025, New Found Gold built a new board of directors and management team and has a solid shareholder base which includes cornerstone investor Eric Sprott. The Company is focused on growth and value creation.
This press release does not constitute an offer to sell or the solicitation of an offer to buy warrants in any state where such offer, solicitation or sale would be unlawful. The warrants have not been, nor will they be, registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption.
Source: New Found Gold
