VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/06/09 -- A correction from source is issued with respect to the news release that was disseminated for NovaGold Inc. (TSX: NG)(NYSE Alternext US: NG) today at 5:41 PM ET. The wording of sentence 2 in paragraph 1 has been revised. The corrected release follows:
NovaGold Resources Inc. (the "Company" or "NovaGold") (TSX: NG)(NYSE Alternext US: NG) announced today that, further to its press release of January 2, 2009, 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 ("Warrant"). 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.
The completion of the expanded offering is subject to a number of conditions and regulatory approvals including approval of the Toronto Stock Exchange ("TSX") and the NYSE Alternext, and the execution of definitive documents. The Warrants contain customary anti-dilution provisions in the event of certain corporate reorganizations or issuances of securities by the Company to all its shareholders. The net proceeds of the additional offering, estimated to be approximately US$14.9 million, will be used for general corporate purposes. The transaction will be completed concurrently with the completion of the sale of Units to Electrum.
About NovaGold
NovaGold is a precious metals company focused on exploration, development and mining, with properties in Alaska and Western Canada. NovaGold has a 50/50 partnership on the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, with Barrick Gold. The Company also has a 50/50 partnership on the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco. NovaGold owns 100% interest in the Rock Creek, Big Hurrah and Nome Gold deposits in Nome, Alaska. NovaGold has one of the largest resource bases of any junior or mid-tier level producing gold company. NovaGold trades on the TSX and NYSE Alternext under the symbol NG.
