08:39 AM EDT, 04/22/2024 (MT Newswires) -- New Found Gold ( NFGC ) said Monday that it will acquire the Kingsway project in Newfoundland and Labrador as well as other related assets from Labrador Gold ( NKOSF ) for $20 million in shares.

The Kingsway project contains 311 mineral claims and adjoins New Found Gold's ( NFGC ) Queensway project.

"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," New Found COO Greg Matheson said.

The transaction requires the approval of two-thirds of the votes cast by Labrador Gold ( NKOSF ) shareholders during a meeting. Directors, officers and certain shareholders of Labrador Gold ( NKOSF ) who own a 2.35% stake have agreed to support the transaction.

The deal is expected to close in the third quarter.

New Found Gold's ( NFGC ) share price fell 1.6% to US$3.62 at last look in US pre-market trading.