NovaGold Announces Increase in Financing to US$75 Millionadmin
NovaGold Resources Inc. announced that the Company has increased its financing by the full $15 million bringing the total to US$75 million. NovaGold has entered into binding agreements with the additional institutional investors referred to in the Company’s previous news release providing for the sale to such investors, on a private placement basis, of an aggregate of 11,538,461 Units for a purchase price of US$1.30 per Unit, for gross proceeds of US$15 million. Each Unit consists of one common share of NovaGold and one common share purchase warrant of NovaGold. Each Warrant entitles the holder thereof to acquire one common share of NovaGold for an exercise price of US$1.50 prior to 5:00 p.m. (EST) on the fourth anniversary of the closing date.
This offering of 11,538,461 Units is in addition to the 46,153,847 Units to be sold by the Company to Electrum Strategic Resources LLC (Electrum) for gross proceeds of approximately US$60 million and brings the total gross proceeds of the financing to US$75 million.