New Found Gold Corp. Completes C$50 Million Flow-Through Shares Offering in the U.S.

Paul, Weiss advised Vancouver-based New Found Gold Corp. in the offering of 6,250,000 of its common shares, which constituted “flow-through” shares for Canadian tax purposes, representing gross proceeds to New Found of C$50 million. The transaction marked the first time that flow-through shares—a type of common share that permits the initial purchaser to claim a tax deduction equal to the amount invested—were offered publicly in the United States. The syndicate of underwriters was led by BMO Capital Markets. New Found holds a 100% interest in the Queensway Project, a gold mine in Newfoundland and Labrador, Canada, and will use the gross proceeds for exploration expenses.

The Paul, Weiss team included corporate partner Christopher Cummings and tax partner David Mayo.