Message #17 From:
NewsBot Date: April 13, 2008 03:43:33 PM
NovaGold Closes US$95 Million Public Offering
NovaGold Resources Inc. (TSX: NG)(AMEX: NG) today announced that it has
successfully closed its public offering of US$95.0 million aggregate
principal amount of its senior convertible notes due May 1, 2015
("Notes") for net proceeds, before deducting estimated offering
expenses, of US$92.15 million. NovaGold has granted the underwriter an
option to purchase up to an additional US$14.0 million aggregate
principal amount of its Notes at the offering price during the period
ending 30 days from the closing to cover over-allotments, if any.
J.P. Morgan Securities Inc. acted as underwriter for the offering.
The net proceeds from the offering will be used to repay the
approximately C$16.0 million drawn down under the Company's C$30
million credit facility, to fund general exploration and development on
the Company's projects and for general corporate purposes.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or province in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such state or province.
About NovaGold
NovaGold is a gold and copper company engaged in the exploration and
development of mineral properties in Alaska and Western Canada.
Production is scheduled for 2008 at the 100%-owned Nome Operations in
Alaska, which includes the Rock Creek, Big Hurrah and Nome Gold
deposits. NovaGold owns 50% of the Donlin Creek gold project in Alaska,
one of the world's largest gold deposits, with Barrick Gold (50%). The
Company also owns 50% of the Galore Creek copper-gold-silver project in
British Columbia with Teck Cominco (50%). Also in Alaska, NovaGold is
earning a 51% interest as manager of the high-grade Ambler
copper-zinc-silver-gold project in partnership with Rio Tinto. NovaGold
has one of the largest resource bases of any exploration or
development-stage precious metals company. NovaGold trades on the TSX
and AMEX under the symbol NG.
Statements in this press release announcing the proposed offering
and the anticipated use of proceeds are forward-looking statements
within the meaning of the United States Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are
not historical facts and that are subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking statements,
including risks related to the exploration stage of the Company's
projects; market fluctuations in prices for securities of
exploration-stage companies; uncertainties about the availability of
additional financing; uncertainties related to fluctuations in gold
prices; the possibility that NovaGold may change its plans with respect
to one or more properties; and other risks and uncertainties described
in the Company's prospectus supplement, base shelf prospectus, Annual
Information Form for the year ended November 30, 2007, and registration
statement on Form F-10 filed with the U.S. Securities and Exchange
Commission and/or the Canadian securities regulators. Although we
believe the expectations reflected in our forward-looking statements
are reasonable, results may vary, and we cannot guarantee future
results, levels of activity, performance or achievements.
Contacts:
NovaGold Resources Inc.
Don MacDonald
Senior Vice President and CFO
(604) 669-6227 or 1-866-669-6227
NovaGold Resources Inc.
Greg Johnson, Vice President,
Corporate Communications and Strategic Development
(604) 669-6227 or 1-866-669-6227
