SCHEDULE: Eric Sprott Boosts Stake in New Found Gold to 23.1%

Eric Sprott and his entities increased their beneficial ownership in New Found Gold Corp. to 23.1% through a C$20 million private placement.

Summary

• Eric Sprott and his controlled entities (2176423 Ontario Ltd. and Sprott Mining Inc.) now beneficially own an aggregate of 56,224,015 Common Shares of New Found Gold Corp.
• This represents approximately 23.1% of the Issuer's 243,007,933 Common Shares outstanding as of August 27, 2025.
• The increase in ownership is primarily due to a private placement completed on August 27, 2025, where 2176423 Ontario acquired 12,269,939 Common Shares for gross proceeds of C$20 million.
• The Reporting Persons' holdings increased by approximately 3.4% of the outstanding Common Shares since the last report (Amendment No. 3), including prior pro-rata acquisitions.
• The acquisition was for investment purposes, with the Reporting Persons continuously evaluating the Issuer's business and prospects.

Sentiment

Score: 7

Explanation: The increased stake by a significant investor like Eric Sprott, coupled with a C$20 million capital injection for the company, generally indicates a positive outlook and confidence in the Issuer's future prospects, despite potential minor dilution for non-participating shareholders.

Positives

• Significant investment by a prominent investor (Eric Sprott) signals confidence in New Found Gold Corp.'s prospects.
• The C$20 million private placement provides capital to the Issuer, likely for its operations and strategic initiatives.
• Increased ownership by a major shareholder can provide stability and strategic alignment.

Negatives

• The private placement could lead to dilution for existing shareholders who did not participate, although the filing notes prior pro-rata acquisitions by the reporting persons.

Future Outlook

Reporting Persons will continuously evaluate New Found Gold Corp.'s businesses and prospects, alternative investment opportunities, and other relevant factors to determine future acquisition or disposition of shares. They may consider various actions, including acquiring additional shares, selling existing shares, or engaging in discussions with management or the board regarding strategic matters.

Industry Context

This filing indicates continued investment by a prominent figure in the mining investment sector, Eric Sprott, into a gold exploration company. Such significant stakes by well-known investors can often be seen as a positive signal within the junior gold mining industry, suggesting confidence in the company's assets or management, especially in a sector sensitive to capital availability and investor sentiment.

Related Party Transactions

• A private placement of 12,269,939 Common Shares was completed with 2176423 Ontario Ltd., an entity controlled by Eric Sprott, a major beneficial owner of New Found Gold Corp., for gross proceeds of C$20 million.

Stakeholder Impact

• Shareholders: Existing shareholders may experience minor dilution from the private placement, but the increased investment by a major shareholder could signal confidence and potentially stabilize the stock.
• Company (New Found Gold Corp.): Receives C$20 million in capital, which can be used for operations, exploration, or other strategic initiatives.

Next Steps

• Reporting Persons will continuously evaluate New Found Gold Corp.'s business, financial condition, operations, and prospects.
• Reporting Persons may acquire additional shares or dispose of existing shares in the open market or privately negotiated transactions.
• Reporting Persons may hold discussions or make formal proposals to the Issuer's management or board regarding strategic matters.

Key Dates

Recommendation

The filing indicates a strong vote of confidence from a major investor, Eric Sprott, through a significant capital injection into New Found Gold Corp. This provides the company with C$20 million in funding and increases a key shareholder's stake. While this is generally positive, the filing itself does not provide new operational or financial performance data to warrant a 'buy' or 'strong buy' recommendation. The 'hold' recommendation reflects the positive signal from the increased investment and capital raise, balanced with the lack of new fundamental performance metrics in this specific filing to drive a stronger immediate action.

Keywords

New Found Gold Corp, Eric Sprott, Private Placement, Beneficial Ownership, Gold Mining, Investment, Sprott Mining, 2176423 Ontario Ltd, Equity Investment