From Earlier, NovaGold Announces Divestiture of Rock Creek; Reduction in Cash Outflows Amounting to Approximately $14M
NovaGold Resources Inc. (NYSE: NG) is pleased to announce that it has signed a Purchase and Sale Agreement (the "Agreement") to transfer the Rock Creek property ("Rock Creek" or "the Project") in Nome, Alaska to Bering Straits Native Corporation ("BSNC"). The Rock Creek transfer further simplifies NovaGold's asset structure to focus on advancing its 50%-owned Donlin Gold project ("Donlin Gold" or the "Project") toward permitting. NovaGold is committed to working with the new leadership at Barrick Gold Corporation ("Barrick") and all key stakeholders to advance Donlin Gold up the value chain. Donlin Gold is owned equally by a wholly-owned subsidiary of NovaGold and a wholly-owned subsidiary of Barrick.
"This transaction is another important step toward turning NovaGold into an exclusively Donlin Gold-focused company," said Gregory A. Lang, NovaGold's President and Chief Executive Officer. "There is a scarcity of uniquely large, high-quality and long-life gold assets in the world today. Donlin Gold is one of only seven gold assets producing or slated to produce in excess of a million gold ounces per year and would be only the third in the premier jurisdiction of North America, offering a unique advantage to its owners. With the divestiture of Rock Creek, we can now concentrate our efforts on permitting and developing Donlin Gold, one of the world's largest and highest-grade known gold projects, to the highest standards of efficiency and environmental stewardship."
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