VANCOUVER, BRITISH COLUMBIA, Oct. 22, 2009 (Marketwire) --
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/22/09 -- NovaGold Resources Inc. (TSX: NG)(NYSE Amex: NG) today provided an update on litigation pending against the Company.
In August 2008, NovaGold, the Galore Creek Mining Corporation and certain of its officers and directors were named as defendants in a securities class action lawsuit filed in the United States District Court for the Southern District of New York. Similar complaints followed and were filed as a consolidated lawsuit on December 22, 2008. The plaintiff alleged violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 on the basis of alleged misstatements and omissions in various public statements and filings made from October 25, 2006 through November 23, 2007 concerning NovaGold's Galore Creek project, and sought an unspecified amount of damages in an amount to be proven at trial.
On June 5, 2009, the Court dismissed all of the plaintiff's claims under the Securities Act of 1933, dismissed all claims against the Galore Creek Mining Corporation, and dismissed certain claims against the Company and its officers and directors under the Securities Exchange Act of 1934. The Company disputes the claims that remain and intends to contest the action vigorously.
On October 14, 2009, NovaGold and certain of its directors and officers together with Hatch Ltd., the engineering firm that completed the October 2006 Galore Creek feasibility study, were named as defendants in a purported class action lawsuit commenced by a Notice of Action filed in the Ontario Superior Court of Justice in Canada. A Statement of Claim has not yet been filed. The Notice of Action alleges, among other things, that the defendants made, or were responsible for, misrepresentations in various public statements and filings made from October 25, 2006 through January 16, 2008 concerning NovaGold's Galore Creek project, and seeks general damages in the amount of $100 million.
NovaGold disputes all of these claims and believes that it has substantial and meritorious legal and factual defenses, which the Company intends to pursue vigorously.
About NovaGold
NovaGold is a 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.
