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Monday, 19th January 2009 (1155 views)

NovaGold has revealed that it has secured a substantial new investor and has obtained approval under the Competition Act (Canada) for the deal.

The Canadian junior exploration company has stated that New York-based private metals investment firm Electrum Strategic Resources will purchase 46,153,847 units of the firm for gross proceeds of $60 million (£41 million).

Vancouver-based NovaGold reported the investment agreement on January 2nd and an additional $15 million financing announced on January 6th and the Toronto Stock Exchange has now accepted notice of the purchase.

Now awaiting approval from the NYSE Alternext, NovaGold hopes to close the financings by January 23rd 2009 and has reduced its bridge loan from Auramet from $20 million to around $13.7 million.

Focused on gold exploration, development and mining, NovaGold has a large resource base located in North America and has increased its resource base over the past decade from 500,000 ounces of gold in 1998 to 27.7 million ounces by mid-2009.

 

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