NOVAGOLD RESOURCES INC. (TSX: NG) (NYSE American:NG) received $25 million from Newmont Corporation (TSX: NGT) (NYSE: NEM) as per the 2018 Share Purchase Agreement in which NOVAGOLD sold its 50% interest in the Galore Creek project in British Columbia, Canada. All amounts are in U.S. dollars.
Under the terms of the Agreement1, total consideration payable by Newmont was up to $275 million. NOVAGOLD received $100 million upon closing, $75 million in July 2021 and this most recent receipt of $25 million.
The latest payment from Newmont increased NOVAGOLD’s cash position by $25 million, which consisted of approximately $109 million of cash and term deposits as of May 31, 2023. As a result of the successful sale of the GCP, NOVAGOLD materially increased its treasury, providing the Company with a strong financial foundation to advance its 50%-owned Donlin Gold project in Alaska.
NOVAGOLD is a well-financed precious metals company focused on the development of its 50%-owned Donlin Gold project in Alaska, one of the safest mining jurisdictions in the world. With approximately 39 million ounces of gold in the Measured and Indicated Mineral Resource categories, inclusive of Proven and Probable Mineral Reserves (541 million tonnes at an average grade of approximately 2.24 grams per tonne, in the Measured and Indicated Resource categories on a 100% basis)2, the Donlin Gold project is regarded to be one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world. According to the 2021 Technical Report and the S-K 1300 Report, both as defined below3, once in production, the Donlin Gold project is expected to produce an average of more than one million ounces per year over a 27-year mine life on a 100% basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint of the open pit which currently covers three kilometers of an approximately eight-kilometer-long gold-bearing trend. Current activities at the Donlin Gold project are focused on state permitting, engineering studies, community outreach, and workforce development in preparation for the eventual construction and operation of this project. With a strong balance sheet, NOVAGOLD is well-positioned to fund its share of permitting and advancement efforts at the Donlin Gold project.
Giyani Metals Corp. (TSX-V:EMM) (GR:A2DUU8) developer of the K.Hill batt... READ MORE
Highlights 2023 JR Zone Drill Program Richards Breccia R23... READ MORE
FIREWEED METALS CORP. (TSX-V: FWZ) (OTCQB: FWEDF) (FSE: M0G) is p... READ MORE
NevGold Corp. (TSX-V:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) is pleas... READ MORE
Pasinex Resources Limited (CSE: PSE) (FSE: PNX) is pleased to pro... READ MORE