Shares of metals explorer New Found Gold Corp. (TSX-V: NFG) rose 10 cents Wednesday on 3.94 million shares after the company followed up its IPO with plans for a 100,000-metre drill program at its Queensway project in Newfoundland.
On Tuesday, New Found closed a $27.3 million IPO, issuing 21 million shares at $1.30 each, in an offering co-led by Cannacord Genuity Corp. and BMO Capital Markets. Now, the company says it has 138.8 shares issued and a working capital of $72 million. Novo Resources Corp. (TSX-V: NVO) holds an 11% stake in New Found Gold, billionaire Eric Sprott holds 18% of shares, and McEwen Mining's Rob McEwen holds 7%.
The company has been privately funding exploration efforts at Queensway for five years and plans to begin its new drill program backed by its new public capital, with completion slated for 2021. Drilling will initially focus primarily on relatively shallow targets, including the hole at the Keats zone which hit grades including 19.0 metres of 92.9 grams of gold per tonne in early exploration in 2019. The project is located on the Trans-Canada Highway, with infrastructure and weather allowing for year-round exploration.
At the time of writing, shares of New Found Gold are trading at $1.54 each, already 24 cents up from their IPO price.