New Found Gold (TSXV: NFG; NYSE-A: NFGC) is recasting itself as a near-term producer in Newfoundland and Labrador with a $292-million (US$212 million) all-share acquisition of Maritime Resources (TSXV: MAE), says CEO Keith Boyle.
The tie-up aims to provide Hammerdown feed the Pine Cove mill over the next three months and use the cash flow to kick-start Queensway’s first stage by 2027.
“We’ve got the full board and full team ready to take this company from pure exploration to producer by the end of this year,” Boyle told The Northern Miner’s Western Editor, Henry Lazenby, on the sidelines of the Mining Forum Americas.
The deal will give New Found holders 69% of the combined company and Maritime investors 31% with about 359 million fully diluted in-the-money shares outstanding. Hammerdown is fully permitted and was the subject of a 2022 feasibility study that envisioned 50,000 oz. of annual production at an all-in sustaining cost of US$912 per ounce.
Proven and probable reserves stand at 1.9 million tonnes grading 4.46 grams gold per tonne for 272,000 contained ounces. The feasibility study calculated an after-tax net present value of $251 million at a 5% discount rate using a base-case gold price of US$2,500 per ounce.
Watch the full interview below:
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