By Devika Patel
Knoxville, Tenn., Jan. 6 - NovaGold Resources Inc. lifted a private placement of units to $75 million. The deal priced for $60 million on Jan. 2.
The company now plans to sell 57,692,308 units at $1.30 apiece to Electrum Strategic Resources LLC. It originally planned to sell 46,153,847 units.
The units each consist of one common share and one warrant, with each warrant exercisable at $1.50 for four years.
Proceeds will be used to repay principal and interest owed under the $20 million bridge loan from Auramet Trading, LLC, to finance continuing exploration and development activities at NovaGold's Donlin Creek gold project in Alaska and the company's Galore Creek copper-gold project in British Columbia, to examine, develop and, if warranted, re-activate the Rock Creek Mine near Nome, Alaska, and for general corporate purposes
NovaGold is a precious metals exploration and development company based in Vancouver, B.C.
| Issuer: | NovaGold Resources Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $75 million
|
| Shares: | 57,692,308
|
| Price: | $1.30
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $1.50
|
| Investor: | Electrum Strategic Resources LLC
|
| Pricing date: | Jan. 2
|
| Upsized: | Jan. 6
|
| Stock symbol: | Toronto: NG
|
| Stock price: | $1.77 at close Dec. 31
|
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