New Found Gold Announces US$75 Million Term Sheet to Advance Queensway Development
New Found Gold secures US$75M non-dilutive debt facility to bridge the gap from explorer to producer at Queensway.
The most recent news (March 5, 2026) announces that New Found Gold (NFG) has signed a non-binding term sheet with Nebari Natural Resources Credit Fund II, LP for a senior secured loan facility of up to US$75 million. The facility is structured in two tranches: US$50 million at closing and US$25 million available within 15 months. The loan carries a 9.25% interest rate with a 24-month term (extendable by 6 months). In exchange, NFG will issue warrants to Nebari at a 25% premium to the 20-day VWAP. The funds are earmarked for procurement of long-lead items and early construction at the Queensway Gold Project.
This news is Material - Positive for several reasons: - Non-Dilutive Capital: It provides a significant portion of the C$155M (approx. US$110M) initial Phase 1 CapEx required for Queensway without a massive equity raise at current prices. - Validation: Engagement with a specialized resource credit fund like Nebari suggests rigorous due diligence has been passed, validating the 2025 PEA and the project's technical viability. - Timeline Acceleration: By funding "long-lead items" now, the company protects its H2/2027 first gold pour target. - Strategic Shift: This confirms NFG’s transition from a pure explorer to a developer/producer, a phase often associated with a valuation re-rating. - Cost of Capital: A 9.25% interest rate is relatively competitive for a junior developer in the current macro environment, especially compared to the cost of equity dilution.
New Found Gold is developing the Queensway Gold Project in Newfoundland, Canada. The project is characterized by high-grade, at-surface orogenic gold mineralization along the Appleton and JBP fault zones. - Flagship: Queensway Project (100% owned). - Secondary Asset: Hammerdown Gold Project (acquired via Maritime Resources), targeted for 2026 production. - Infrastructure: Ownership of the Pine Cove Mill and Nugget Pond gold circuit provides a massive head start on processing capabilities.