VANCOUVER, BRITISH
COLUMBIA--(Marketwire - March 11, 2010) - NovaGold Resources Inc. (TSX:NG)(NYSE Amex:NG) today announced that it has closed its non-brokered
offering of 13,636,364 common shares of the Company at a price of US$5.50 per
common share for gross proceeds of US$75,000,002 (the "Offering"), as
announced on March 8, 2010. The Offering was made to Quantum Partners Ltd.
("Quantum"), a private investment fund managed by Soros Fund Management LLC,
pursuant to a subscription agreement between the Company and Quantum. The
Offering is in addition to the Company's US$100 million equity financing that
closed on March 9, 2010, for total gross proceeds raised under the two
financings of US$175 million.
The Company intends to use
the net proceeds from these financings to
fund general exploration and development on the Company's advanced properties
including Donlin Creek, Galore Creek and Rock Creek, its early-stage Ambler
property, and for
general corporate purposes, including funding potential future acquisitions.
The Offering was completed under a prospectus supplement (the "Supplement") to
the Company's base shelf prospectus dated December 30, 2009 (the "Shelf Prospectus"). The
Company has filed the Shelf Prospectus with certain Canadian securities regulatory
authorities and a registration statement with the United States Securities and
Exchange Commission (the "SEC"). The Company has filed the Supplement, which contains
additional information about the Offering, with the British Columbia Securities
Commission and the SEC. Copies of the Supplement and the accompanying Shelf
Prospectus may be obtained from the Company by calling Investor Relations at
1-866-669-6227. An electronic copy of the Shelf Prospectus is also available on
the SEC's website at www.sec.gov and on SEDAR at www.sedar.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any state or province in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state or province.
About
NovaGold
NovaGold is a growth-focused precious metals company engaged in
the exploration and development of mineral properties in North America. The
Company has a portfolio of mineral properties located in Alaska, USA, and
British Columbia, Canada. The Company's largest projects are being advanced
with major mining companies. The Donlin Creek project is held by a limited
liability company owned equally by NovaGold and Barrick Gold U.S. Inc. The
Galore Creek project is held by a partnership owned equally by NovaGold and
Teck Resources Limited. NovaGold owns a 100% interest in the Rock Creek, Big
Hurrah and Nome Gold deposits in Nome, Alaska and in the Ambler deposit in
northern Alaska. NovaGold has one of the largest reserve/resource bases of any
junior or mid-tier level producing gold company, and trades on the TSX and
NYSE-AMEX under the symbol NG. More information is available by emailing info@novagold.net.
Cautionary Note Regarding
Forward-Looking Statements
This
press release includes certain "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of 1995 and forward-looking
information within the meaning of Canadian securities laws. All statements, other than statements of historical fact,
included herein including, without limitation, plans for and intentions with
respect to the Company's use of proceeds from the sale of securities and NovaGold's
future operating or financial performance are forward-looking statements.
Forward-looking statements involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from NovaGold's expectations include the need for additional
financing to explore and develop properties and availability of financing in
the debt and capital markets; uncertainties involved in the interpretation of
drilling results and geological tests and the estimation of reserves and
resources; the need for continued cooperation with Barrick Gold and Teck Resources
in the exploration and development of the Donlin Creek and Galore Creek
properties; the need for cooperation of government agencies and native groups
in the development and operation of properties; the need to obtain permits and
governmental approvals; risks of construction and mining projects such as
accidents, equipment breakdowns, bad weather, non-compliance with environmental
and permit requirements, unanticipated variation in geological structures, ore
grades or recovery rates; unexpected cost increases; fluctuations in metal
prices and currency exchange rates; the outcome of litigation pending against
the company; and other risk and uncertainties disclosed in NovaGold's Annual
Information Form for the year ended November 30, 2009, filed with the Canadian
securities regulatory authorities, and NovaGold's annual report on Form 40-F
filed with the United States Securities and Exchange Commission and in other
NovaGold reports and documents filed with applicable securities regulatory
authorities from time to time. NovaGold's forward-looking statements reflect
the beliefs, opinions and projections on the date the statements are made.
NovaGold assumes no obligation to update the forward-looking statements of
beliefs, opinions, projections, or other factors, should they change.