By Devika Patel
Knoxville, Tenn., Sept. 26 - NovaGold Resources Inc. said it settled a $20 million convertible bridge loan with Auramet Trading, LLC.
The loan matures Dec. 29, 2008. It bears interest at 12%.
The loan may be converted into common stock at C$12.00 per share.
Auramet also received warrants for 750,000 common shares, which are exercisable at C$7.18 until Sept. 25, 2010.
As security for the loan, NovaGold has given Auramet a security interest in the Rock Creek mine and a pledge of securities in certain material subsidiaries and guarantees.
Proceeds will be used for general corporate purposes.
NovaGold is a precious metals exploration and development company based in Vancouver, B.C.
| Issuer: | NovaGold Resources Inc.
|
| Issue: | Convertible bridge loan
|
| Amount: | $20 million
|
| Maturity: | Dec. 29, 2008
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | C$12.00
|
| Warrants: | For 750,000 shares
|
| Warrant expiration: | Sept. 25, 2010
|
| Warrant strike price: | C$7.18
|
| Investor: | Auramet Trading, LLC
|
| Settlement date: | Sept. 26
|
| Stock symbol: | Toronto: NG
|
| Stock price: | C$6.90 at close Sept. 26
|
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