Eric Sprott Announces Additional Securities of New Found Gold Corp. Acquired in Exchange for Securities of Maritime Resources Corp. Pursuant to the Plan of Arrangement
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The most recent news from November 13, 2025, announces that New Found Gold (NFG) has closed its previously announced acquisition of Maritime Resources Corp. (MAE) by way of a plan of arrangement. Under the terms of the deal, each Maritime shareholder received 0.75 of a New Found Gold common share. Following the transaction, former NFG shareholders own approximately 69% and former MAE shareholders own approximately 31% of the combined company.
The acquisition combines NFG's large-scale Queensway Gold Project with Maritime's near-term production Hammerdown Gold Project, both located in Newfoundland. The stated goal is to create an "emerging Canadian gold producer."
Concurrent with the closing, an early warning report was filed by strategic investor Eric Sprott. As a result of the arrangement, Mr. Sprott acquired additional securities of NFG in exchange for his Maritime securities. His post-transaction ownership stands at 63,915,265 NFG shares and 2,000,025 NFG warrants, representing approximately 18.9% of the outstanding shares on a non-diluted basis and 19.4% on a partially-diluted basis.
The closing of the Maritime Resources acquisition is a material and positive event for New Found Gold. It fundamentally transforms the company from a pure-play, high-risk exploration story into a more diversified development company with a clear, staged path to production.
- Strategic Pivot: This acquisition represents a shrewd strategic pivot following the market's severe negative reaction to the company's initial Mineral Resource Estimate (MRE) in March 2025. The MRE, with an average indicated grade of 2.40 g/t Au, disappointed investors who had been conditioned by years of bonanza-grade drill results in headlines, causing the stock to fall over 30% in one day. This made financing the large C$155M initial capex for the Queensway project via equity markets alone a daunting and highly dilutive proposition.
- De-risking Production: By acquiring the fully-permitted Hammerdown project, NFG gains a source of near-term cash flow (targeting 50,000 oz/yr starting in 2026). The explicit strategy is to use this cash flow to help fund the development of Queensway. This significantly de-risks the financing pathway for Queensway and reduces reliance on volatile capital markets.
- Execution is Now Key: The company has successfully executed its M&A strategy. The focus now shifts from exploration potential to operational execution. The primary risk is now bringing the Hammerdown project into production on time and on budget. The project's 2022 Feasibility Study may have outdated cost estimates, which presents a key risk to monitor.
- Shareholder Confirmation: The concurrent early warning report from Eric Sprott is a routine filing but serves as a positive confirmation of his continued significant support for the company's new strategic direction. Maintaining a cornerstone investor of his caliber through this transition is a crucial vote of confidence.
In the context of the historical news, this event is the culmination of a series of strategic moves in 2025, including a complete management and board overhaul, a major financing round, the release of a PEA for Queensway, and now this transformative acquisition. The company is delivering on its new strategy to become a producer.
New Found Gold Corp. is an emerging Canadian gold producer focused on the advancement of its two core assets in Newfoundland and Labrador. 1. Queensway Gold Project: This is the company's 100%-owned flagship asset. It is a large, district-scale exploration project with an initial MRE (March 2025) of 1.39 Moz Indicated at 2.40 g/t Au and 0.61 Moz Inferred at 1.77 g/t Au. A July 2025 PEA outlined a 15-year mine life with a phased development approach, starting with a smaller, high-grade operation with an initial capex of C$155M, targeting first production in 2027. 2. Hammerdown Gold Project (acquired): A high-grade, fully permitted, construction-ready project. A 2022 Feasibility Study outlined a 5-year mine life producing 50,000 oz/year at an AISC of US$912/oz. Production is targeted for early 2026. The project is intended to provide near-term cash flow to support the development of Queensway.