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• Exploits has agreed to sell its Newfoundland mineral claims to New Found Gold for up to $8.8M, including $7.0M in shares and a 1% NSR royalty.
• The royalty applies to Bullseye, Gezeebow, and Keats West, which we previously noted as important for advancing NFG’s Queensway Project.
• The Company is well-funded for exploration at its Ontario and Quebec Projects, hosting 680Koz in historical gold resources.
• We recently initiated on NFLD; view the full initiation report here.
This morning, Exploits Discovery Corp. (NFLD:CSE, NFLDF:OTC) announced that it has signed a definitive agreement with New Found Gold Corp. (NFG:TSXV) for the sale of 100% interest in all its mineral claims in central Newfoundland. The deal provides Exploits with up to $8.8M in value, including $7.0M in NFG shares based on the 20-day VWAP, a 1% NSR royalty on the Bullseye and Gazeebow claims, and an additional $1.8M in contingent shares tied to disputed claims. We are extremely pleased with this transaction, as in our model we assumed a project value of $5.0M. The $8.8M (assuming NFG’s shares remain stable), far exceeds our expectations, especially relative to Exploits' $10.1M market cap.
Following the closing of the transaction, Exploits will shift its focus exclusively to its Ontario and Quebec assets, which together host 680Koz of historical gold resources with substantial expansion potential. This leaves the Company well-funded to advance exploration across these projects. We are maintaining our BUY rating and our $0.10/share target price on Exploits Discovery Corp.
NFLD: Sells Newfoundland Claims for $8.8M
What you need to know:• Exploits has agreed to sell its Newfoundland mineral claims to New Found Gold for up to $8.8M, including $7.0M in shares and a 1% NSR royalty.
• The royalty applies to Bullseye, Gezeebow, and Keats West, which we previously noted as important for advancing NFG’s Queensway Project.
• The Company is well-funded for exploration at its Ontario and Quebec Projects, hosting 680Koz in historical gold resources.
• We recently initiated on NFLD; view the full initiation report here.
This morning, Exploits Discovery Corp. (NFLD:CSE, NFLDF:OTC) announced that it has signed a definitive agreement with New Found Gold Corp. (NFG:TSXV) for the sale of 100% interest in all its mineral claims in central Newfoundland. The deal provides Exploits with up to $8.8M in value, including $7.0M in NFG shares based on the 20-day VWAP, a 1% NSR royalty on the Bullseye and Gazeebow claims, and an additional $1.8M in contingent shares tied to disputed claims. We are extremely pleased with this transaction, as in our model we assumed a project value of $5.0M. The $8.8M (assuming NFG’s shares remain stable), far exceeds our expectations, especially relative to Exploits' $10.1M market cap.
Following the closing of the transaction, Exploits will shift its focus exclusively to its Ontario and Quebec assets, which together host 680Koz of historical gold resources with substantial expansion potential. This leaves the Company well-funded to advance exploration across these projects. We are maintaining our BUY rating and our $0.10/share target price on Exploits Discovery Corp.
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Exploits Discovery Corp.
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Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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