By Sheri Kasprzak
New York, July 6 - NovaGold Resources Inc. said a partial greenshoe has been exercised on its previously announced C$50 million private placement, bringing the total proceeds to C$62.6 million.
The company will sell 6.26 million special warrants at C$10.00 each. A total of 1.26 million special warrants will be sold under a greenshoe exercised by a syndicate of underwriters.
The special warrants are exchangeable into units of one share and one half-share warrant once the company obtains a receipt for a prospectus qualifying the underlying shares and warrants or four months after the deal is closed.
The whole warrants provide for the purchase of an additional share at C$12.10 each for 30 months.
The deal is expected to close July 7.
The offering was first announced June 21 as a C$50 million offering of up to 5 million special warrants under the same terms. A syndicate of underwriters had an over-allotment option for up to 2.5 million additional special warrants, exercisable up to 48 hours before closing.
NovaGold, based in Vancouver, B.C., is a precious metals exploration and development company. The proceeds will be used for development of the Galore Creek project, the Rock Creek project and for general corporate purposes.
| Issuer: | NovaGold Resources Inc.
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| Issue: | Special warrants, convertible into units of one share and one half-share warrant
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| Amount: | C$62.6 million
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| Special warrants: | 6.26 million (includes greenshoe for 1.26 million)
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| Price: | C$10.00
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| Warrants: | One half-share warrant per unit upon conversion
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| Warrant expiration: | 30 months
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| Warrant strike price: | C$12.10
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| Pricing date: | June 21
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| Greenshoe exercised: | July 6
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| Settlement date: | July 7
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| Stock price: | C$9.80 at close June 21
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| Stock price: | C$9.50 at close July 6
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