The transaction, which includes related mine assets, will be funded by New Found issuing LabGold a number of common shares in the company for C$20 million ($15m) divided by the closing price of the shares on the TSX Venture Exchange on the last trading day before the deal’s closing date.

“Kingsway today is reminiscent of Queensway when New Found acquired the project back in 2016 with numerous early discoveries and large swaths of under explored structures that later evolved into significant mineralized zones,” New Found chief operating officer, Greg Matheson, said in the statement.

The combined projects have a strike length of over 20km along the Appleton Fault Zone, more than doubling the existing strike length in the Queensway North project, New Found said.

Consolidating both projects, the company noted, offers increased potential to solidify the district scale nature of Queensway.