New Found Gold: implied equity value of deal is ~C$292M

New Found Gold: implied equity value of deal is ~C$292M

New Found Gold Corp. (NYSE-A: NFGC) has entered into a definitive agreement to acquire Maritime Resources Corp. (TSXV: MAE) in an all-stock transaction valued at approximately $292 million [1]. The deal, announced on September 5, 2025, will create a multi-asset near-term gold producer in Newfoundland, Canada.

Under the agreement, Maritime shareholders will receive 0.75 New Found Gold shares for each Maritime share, representing a 32% premium based on the 20-day VWAP [1]. The strategic combination aims to leverage Maritime's near-term production from the Hammerdown Gold Project, which is expected to begin production in early 2026, to fund the development of New Found Gold's Queensway Project, targeting Phase I production in 2027.

The merged entity will benefit from significant operational synergies, including access to Maritime's Pine Cove Mill and Nugget Pond facilities. Post-transaction, existing New Found Gold and Maritime shareholders will own approximately 69% and 31% of the combined company, respectively, on a fully-diluted basis [1].

The acquisition represents a transformative transaction for both companies, creating an emerging multi-asset gold producer in Newfoundland. New Found Gold is acquiring Maritime at an implied equity value of $292 million, with Maritime shareholders receiving 0.75 New Found Gold shares per Maritime share, representing a 32% premium to Maritime's 20-day VWAP [1].

The transaction's industrial logic is compelling, as Maritime's Hammerdown project is expected to provide near-term cash flow that can fund the development of New Found Gold's larger Queensway project. This eliminates the typical funding gap challenge faced by developers transitioning to producers. The transaction also unlocks significant operational synergies through shared infrastructure, including Maritime's Pine Cove Mill and Nugget Pond Hydrometallurgical Gold Plant, critical processing facilities that secure the pathway for Queensway's development as envisioned in its recent PEA [1].

From a technical perspective, both assets share similar geological characteristics as high-grade gold deposits in central Newfoundland, allowing for knowledge transfer and operational best practices across projects. The 180km distance between the assets is manageable for coordinated management while providing geographical diversification within a tier-1 mining jurisdiction [1].

The transaction's structure preserves balance sheet flexibility, using an all-stock approach that conserves cash for development activities. New Found Gold gains immediate operator experience through Maritime's team, who are already advancing Hammerdown toward full production, addressing a key capability gap in transitioning from explorer to producer [1].

For the combined entity, this creates a compelling growth profile with production starting in 2026 from Hammerdown, followed by Queensway in 2027, establishing a foundation for sustained production growth in a mining-friendly jurisdiction with significant exploration upside across the enlarged land package [1].

References:
[1] https://www.stocktitan.net/news/NFGC/new-found-gold-and-maritime-enter-into-definitive-agreement-to-k5u6hktdcr30.html