New Found Gold (TSXV: NFG) has its eyes on more prospective ground in Newfoundland. The company this morning revealed that it has entered into an agreement with Labrador Gold (TSXV: LAB) to acquire the Kingsway project, which is adjacent to the company’s flagship Queensway property.

The transaction will see New Found Gold acquire a 100% interest in the Kingway project, along with certain related assets. The project currently consists of 311 mineral claims that cover 7,775 hectares of prospective ground. Those claims notably cover 12 kilometres of presumed strike length of the Appleton Fault Zone, with drilling conducted by Labrador Gold identifying similar mineralization styles to that of what exists on the Queensway project.

Under the terms of the transaction, Labrador Gold is to receive C$20.0 million for the assets, which is to be paid in the form of common shares of New Found Gold, subject to shareholders approving the transaction.

New Found Gold meanwhile intends to expand on existing discoveries on the property and identify further mineralized zones.

“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 mineralized zones. We like to think that Kingsway is entering its discovery phase,” commented Greg Matheson, COO of New Found Gold.

New Found Gold last traded at $5.07 on the TSX Venture.

Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.