Novagold Resources closes $310-million (U.S.) financing

Executive Summary

• Novagold Resources Inc. has closed an upsized bought deal private placement, raising approximately US$310 million in gross proceeds.
• The offering consisted of 31.02 million common shares priced at US$10 per share, including the partial exercise of the overallotment option and participation from two cornerstone investors.
• Net proceeds are designated for expenditures at the Donlin gold project, settlement of a prepayment option with Barrick Mining Corp., and general corporate purposes.

Key Details

• Gross Proceeds: Approximately US$310 million.
• Shares Issued: 31.02 million common shares.
• Price Per Share: US$10.00.
• Underwriters/Bookrunners: BMO Capital Markets, RBC Capital Markets, and Scotiabank.
• Underwriter Fees: Aggregate cash fee of 5% of gross proceeds.
• Use of Proceeds:
  • Expenditures associated with activities at the Donlin gold project.
  • Settlement of the company's prepayment option on the promissory note with Barrick Mining Corp.
  • General corporate purposes.
• Investor Composition: Included two cornerstone investors.
• Regulatory/Trading Conditions:
  • Offered in Canada, the US, and other jurisdictions under applicable prospectus/registration exemptions.
  • Common shares are subject to a minimum six-month hold period from the closing of the offering under applicable securities laws.

Notable Quotes

• No direct quotes from management were included in the provided text.