September 5, 2025
New Found Gold (TSXV: NFG; NYSE-A: NFGC) has announced its acquisition of Maritime Resources (TSXV: MAE) in a transaction valued at approximately C$292 million ($212 million). This merger aims to establish a multi-asset gold producer in central Newfoundland.
The combined entity will integrate New Found's Queensway project, slated to commence production in 2027, with Maritime's Hammerdown project, which is expected to start output this year. The projects, located 180 km apart, will benefit from shared infrastructure, including Maritime's Pine Cove mill and the Nugget Pond hydrometallurgical plant.
The acquisition offers a nearly one-third premium to Maritime's recent share price and 56% more than its closing price on July 30, the day before the companies signed a letter of intent. New Found CEO Keith Boyle highlighted the financing synergy from using Hammerdown's cash flow to support Queensway's development costs.
Shares of New Found Gold dropped 3.1% to C$2.52 in Toronto, valuing the company at C$591 million ($426 million). Maritime's stock decreased by 2.7% to C$1.82, with a market capitalization of C$212 million ($153 million).
Maritime CEO Garett Macdonald noted the deal provides shareholders with long-term exposure to a larger producer and resource expansion. He emphasized the exploration potential around the Hammerdown project and the Pine Cove mill.
The agreement is part of a trend of consolidation in Canada's gold sector, as companies seek scale and near-term output amid high gold prices. Maritime enters the transaction with a strong financial position, including a current ratio of 5.05 and a low debt-to-equity ratio of 0.12.
Maritime shareholders will receive 0.75 of a New Found share for each Maritime share held. Upon completion, New Found shareholders will own about 69% of the combined company, while Maritime holders will have about 31%.
New Found Gold plans to transport ore at a cost of $75 per tonne to the Pine Cove mill, which has a 700-tonne daily capacity. The Nugget Pond plant can process 1,300 tonnes a day. Hammerdown is fully permitted, with a 2022 feasibility study projecting 50,000 oz. of annual production at an all-in sustaining cost of $912 per ounce.
Queensway, near Gander, is envisioned as a 15-year mine producing 1.5 million oz. at all-in sustaining costs of $1,256 per oz. A preliminary economic assessment outlines a C$155 million capex for stage one, averaging 69,300 oz. annually in the first four years, followed by a C$442 million stage two expansion.
The companies expect to finalize the deal in the fourth quarter of this year, after which Maritime's shares will be delisted from the TSX Venture Exchange. The transaction requires two-thirds approval from Maritime shareholders, with 49% of shares already in support agreements.
