Tuesday, April 23, 2024
Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Agreement to sell the flagship Kingsway project. Labrador Gold agreed to sell its 100% interest in the Kingsway project to New Found Gold Corp. (TSXV: NFG) for C$20 million in NFG shares, including all property and mining rights. The number of shares received will be determined by dividing the purchase price by the closing price of NFG shares on the last trading day prior to the closing of the transaction.
Closing expected in the third quarter of 2024. The transaction is expected to close in the third quarter of 2024 and is subject to certain conditions, including receipt of regulatory and stock exchange approvals and approval from a 66 2/3% majority of the votes cast by Labrador Gold shareholders at a special meeting to be scheduled in early July 2024. Directors, officers, and certain shareholders of Labrador Gold have entered into voting support agreements with NFG and have agreed to vote their shares in favor of the transaction. According to the company’s corporate presentation, insiders own approximately 13.2% of Labrador’s outstanding shares and institutional investors own 23.0%.
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