New Found Gold Secures US$75M Loan at 9.25% Plus US$5.6M Warrants
New Found Gold entered a US$75 million loan facility term sheet with US$50 million and US$25 million tranches at 9.25% fixed annual interest over 24 months and US$5.625 million in warrants. Proceeds will fund Queensway Gold Project Phase 1 construction, Pine Cove Mill expansion and target first production in late 2027.
1. Loan Facility Terms
New Found Gold has agreed to a non-binding term sheet for a senior secured loan facility of US$75 million, advanced in two tranches of US$50 million at closing and US$25 million within 15 months. The facility carries a fixed 9.25% annual interest rate payable quarterly, a 0.50% annual administration fee, a 24-month term extendable by six months and customary arrangement fees.
2. Use of Proceeds and Project Timeline
The funds will finance Phase 1 of the Queensway Gold Project, including procurement of long-lead items, early construction works and expansion of the Pine Cove Mill to accommodate off-site milling. This financing, combined with Hammerdown cashflows, positions the company for a formal construction decision later this year and aims for first production in late 2027.
3. Warrants and Security Package
As part of the agreement, the lender will receive non-transferable warrants valued at US$3.75 million for the first tranche and US$1.875 million for the second, exercisable at a 25% premium to the 20-day VWAP for 24 months. All company subsidiaries guarantee the facility, secured by first-lien interests over present and after-acquired property.