NovaGold Electrum Financing Obtains Competition Act Approvaladmin
NovaGold Resources Inc. announced that an Advance Ruling Certificate has been issued under the Competition Act (Canada) permitting the completion of the purchase by Electrum Strategic Resources LLC of 46,153,847 units of the Company for gross proceeds of US$60 million under the financing announced on January 2, 2009. The Toronto Stock Exchange has accepted notice of this US$60 million financing and the additional US$15 million financing announced on January 6, 2009 and conditionally approved the listing of the additional common shares to be issued.
The Company is awaiting approval from the NYSE Alternext. Subject to receipt of this approval, the Company anticipates closing the financings by January 23, 2009 for gross proceeds of US$75 million.
The Company also announced that its bridge loan from Auramet has been reduced from US$20 million to approximately US$13.7 million as a result of the conversion of approximately US$6.3 million principal amount of the loan into 5,000,000 common shares of NovaGold. Unless earlier converted to common shares, the remaining principal balance of US$13.7 million and accrued interest will be payable from the proceeds of the financing.