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New Found Gold (TSXV: NFG) is to issue 4.4 million flow-through common shares of the company at a price of C$11.39 each to fund exploration at its Queensway gold project in Newfoundland and its Lucky Strike project in Ontario.

The shares will be purchased by a syndicate of underwriters led by Canacccord Genuity and BMO Capital Markets, and will raise a total of C$50 million ($39.5m). The underwriters have been granted an option to purchase up to an additional 15% of shares under the same terms as the original offering.

The company is the 100%-owner of the Queensway gold project 15 km west of Gander. A 200,000-metre, eight-rig drill program is underway on the property. It is focused on a 7.8-km corridor along the Appleton fault and a 12.4-km corridor along the JBP fault.

The discovery hole at the Keats zone, found along the Appleton fault, returned 19 metres grading 92.9 g/t gold. The best intersection was 5.2 metres of 430.2 g/t gold from the Golden Joint zone at Queensway. Another standout came from the Lotto zone, 5.2 metres of 430.2 g/t. High grade mineralization has been defined over 465 metres down plunge and about 200 metres vertically.

Earlier this month, New Found completed a 3-D model of the Keats-Lotto trend. One drill is sequentially testing multiple targets along the JBP fault zone 5 km east of the Appleton fault. New Found is working on an initial resource estimate for Queensway.

(This article first appeared in The Northern Miner)