Dundee unveils $159 million New Found Gold unit sale
Dundee Corp. [DC.A-TSX] has announced the sale of New Found Gold Corp. [NFG-TSXV] units for $159.1 million. Dundee said it has struck a deal with two investment dealers to sell 24.5 million units for $4.00 each to qualified purchasers for gross proceeds of $97.9 million. Each unit will consist of one common share of New Found owned by Dundee and one half of one common share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of New Found owned by Dundee at an exercise price of $5.00 for a term of 12 months from the date of issue. In the event that all the warrants are exercised, the total gross proceeds to Dundee would be $159.1 million.
“Monetizing this position enables us to redeploy capital into opportunities that strengthen our cash generation profile, while our retained warrant position preserves meaningful participation in the company’s future growth,’’ said Dundee President and CEO Jonathan Goodman. “This transaction reflects our disciplined approach to capital allocation and enhances our ability to advance our strategic priorities,” he said.
Upon closing of the sale transaction, Dundee will own 12.2 million New Found shares and 7.65 million warrants representing a 3.6% interest (undiluted) and 5.7% on a partially diluted based. That’s down from 10.8% (undiluted) and 12.8% partially diluted, prior to the sale transaction.
In the event that the warrants forming part of the units are exercised in full, Dundee will dispose of an additional 12.2 million New Found shares at $5.0 each, for additional proceeds of $61.2 million, reducing its interest in New Found to 2,569 shares and 7.6 million warrants representing less than a 1.0% interest (undiluted) and 2.2% partially diluted.
On Monday, New Found shares eased 7.4% or 32 cents to $3.99. The shares trade in a 52-week range of $4.54 and $1.34. Dundee Corp. shares advanced on the news, rising 4.8% or 17 cents to $3.74. The shares trade in a 52-week range of $4.54 and $1.35.
Dundee Corp. is a holding company with an asset base that includes investments in precious and base metals projects across three continents. The portfolio includes a 35.7% stake in SPC Nickel Corp. [SPC-TSXV] and 18.8% of Magna Mining Corp. [NICU-TSXV, MGMNF-OTCQB, BYD-FSE].
New Found Gold’s key asset is the 100%-owned Queensway Gold Project in Newfoundland. In a press release on July 21, 2025, the company released the results of a preliminary economic assessment (PEA) for the development of the AFZ Core on the Queensway project. The PEA envisions a 15-year life of mine producing 1.5 million ounces of recoverable gold and is planned to be developed in three phases.
Resource World Magazine Inc. has prepared this editorial for general information purposes only and should not be considered a solicitation to buy or sell securities in the companies discussed herein. The information provided has been derived from sources believed to be reliable but cannot be guaranteed. This editorial does not take into account the readers investment criteria, investment expertise, financial condition, or financial goals of individual recipients and other concerns such as jurisdictional and/or legal restrictions that may exist for certain persons. Recipients should rely on their own due diligence and seek their own professional advice before investing.