New Found Gold (NFGC) said Monday that it has entered into an agreement to acquire a 100% interest in certain mineral claims in Newfoundland and Labrador from Exploits Discovery.

The claims adjoin New Found's Queensway gold project and will increase the project's size by up to 33%, the company said. The transaction is expected to close in Q4.

New Found Gold will issue about 2.8 million of its common shares to Exploits, grant a 1% net smelter returns royalty and potentially issue a further 725,543 shares with respect to certain disputed mineral claims.

The company's shares were up more than 7% in recent Monday premarket activity.