New Found Gold Corp. entered into a property purchase agreement to acquire Kingsway Project from Labrador Gold Corp. for CAD 20 million.

New Found Gold Corp. (TSXV:NFG) entered into a property purchase agreement to acquire Kingsway Project from Labrador Gold Corp. (TSXV:LAB) for CAD 20 million on April 21, 2024.

Consideration is payable and satisfied by the delivery to LabGold of such number of NFG Common Shares determined by dividing the Purchase Price by the closing price of the NFG Common Shares on the TSX Venture Exchange (?TSXV?) on the last trading day prior to the closing of the Transaction. The Consideration Shares will be subject to a resale restriction of four months and one day from the closing of the Transaction. LabGold?s board of directors has unanimously recommended that LabGold?s shareholders vote in favour of the Transaction.

The Transaction is subject to customary conditions, including receipt of necessary regulatory and stock exchange approvals and approval from a 66 2/3% majority of the votes cast by LabGold Shareholders at the next annual general and special meeting of LabGold to be scheduled for early July, 2024 and is is expected to close in the third quarter of 2024.