New Found Gold has signed an agreement to acquire a 100% interest in the Kingsway Project in Gander, Newfoundland and Labrador, from Labrador Gold for C$20m ($14.57m).

This deal includes all property and mining rights associated with the Kingsway Project.

It will be settled via the issuance of New Found shares to LabGold based on the closing price on the TSX Venture Exchange prior to the deal's completion.

The transaction includes deal-protection provisions, a right for New Found to match superior proposals and a termination fee of C$500,000.

LabGold's directors, officers, and certain shareholders, representing nearly 2.35% of the company's shares, have agreed to vote in favour of the transaction.

Subject to approval by LabGold shareholders and customary closing conditions, including TSX-V approval, the transaction is expected to close in the third quarter of 2024.

Covering an area of 7,775 hectares, the Kingsway Project comprises 311 mineral claims and shares borders with New Found's Queensway Project located 15km west of Gander.

New Found looks to leverage its geological knowledge and exploration infrastructure to expand on the Kingsway Project's discoveries and explore additional mineralised zones.

New Found chief operating officer Greg Matheson said: “The acquisition of the Kingsway Project announced today is a significant building block to the district scale potential of the Queensway Project.

“Kingsway today is reminiscent of Queensway when New Found acquired the project back in 2016 with numerous early discoveries and large swaths of underexplored structures that later evolved into significant mineralised zones. We like to think that Kingsway is entering its discovery phase.

“The combined projects have over 20km of strike length along the Appleton Fault Zone, which more than doubles the existing strike length currently within the Queensway North project.”