Becoming a Pure Gold Play Focused on Donlin Gold.
•Donlin Gold, NovaGold's flagship project, successfully passed feasibility and has emerged as perhaps the most important gold development asset in the world today;
Message: Extended the maturity date
| December 19, 2008 |
| NovaGold Reaches Agreement to Extend Maturity Date on Rock Creek Bridge Loan |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - NovaGold Resources Inc. (the "Company" or "NovaGold") (TSX:NG)(NYSE-A:NG) is pleased to announce that it has entered into an agreement with Auramet Trading LLC. ("Auramet") to extend the maturity date on any portion of the Company's $20 million bridge loan not paid back by December 29, 2008 to March 13, 2009. As part of this agreement, the conversion price of the outstanding balance of the bridge loan will be reduced to the volume weighted average trading price on the Toronto Stock Exchange for the 5 days ending December 18, 2008 of C$1.53, the exercise price of the 750,000 Warrants issued at the time the bridge loan was advanced will also be repriced to C$1.53 and the Company will issue an additional 1,000,000 common share purchase warrants with a term of two years at an exercise price of C$1.53. The interest rate on the principal amount that remains outstanding and that is extended will increase from 12% per annum to 15% per annum. Auramet will be paid an extension fee equal to 6% of the portion of the facility not paid on or before the December 29th maturity date. In addition NovaGold shall have the right to prepay the facility in whole or in part, in minimum increments of US$1,000,000 at any time on 10 days prior notice without a penalty or premium. The other terms and conditions of the Auramet bridge loan will remain unchanged. "We are pleased to have been able to have worked flexibly with Auramet to extend the bridge loan facility," said Rick Van Nieuwenhuyse, President and CEO of NovaGold. "This extension provides the time for the Company to continue discussions with a variety of interested parties to address NovaGold's funding needs to advance our development stage projects in 2009." The terms of the extension of the bridge loan, including the amendments to the conversion price and the exercise price of the warrants is subject to regulatory approvals including approval of the Toronto Stock Exchange and the NYSE Alternext. About NovaGold NovaGold is a precious metals company focused on exploration, development and mining, with mineral properties in Alaska and Western Canada. NovaGold owns 50% of the Donlin Creek gold project in Alaska, one of the world's largest gold deposits, with Barrick Gold (50%). The Company also owns 50% of the Galore Creek copper-gold-silver project in British Columbia with Teck Cominco (50%). NovaGold owns 100% of 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 NYSE Alternext and TSX under the symbol NG. More information is available online at www.novagold.net or by e-mail at info@novagold.net. |
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