11:25 AM EDT, 04/23/2024 (MT Newswires) -- New Found Gold's ( NFGC ) outperform rating and C$8.00 price target was reiterated by National Bank of Canada on Tuesday following the company's agreement to buy the Kingsway project in Newfoundland from Labrador Gold (LAB.V) for C$20 million in shares.

The bank said the transaction is at a relatively low cost considering that the transaction would nearly double the prospective strike length along the Appleton fault within New Found Gold's ( NFGC ) Queensway project.

The transaction is expected to close in the third quarter pending the approval of around 67% of Labrador Gold shareholders.

New Found is currently conducting a 650,000-meter drill program at Queensway.

New Found shares were last seen up C$0.12 to C$5.04 on the TSX Venture Exchange.

Price: 5.04, Change: +0.12, Percent Change: +2.44