NovaGold Resources Proposes To Issue Shares To Soros' Quantum Partners Fund
March 08 2010 - 11:44AM
Dow Jones News
NovaGold Resources Inc. (NG), which explores for gold in North
America, said Monday that it is proposing to issue shares to
Quantum Partners Ltd., a private investment fund managed by Soros
Fund Management LLC, to finance development of its ore
reserves.
The move comes as funds increase gold investment through mining
companies and follows a filing that showed Soros doubled his gold
investment at the end of 2009.
NovaGold said it's proposing to issue 13,636,364 common shares
at a price of $5.50 per common share for gross proceeds of $75
million. The announcement follows the $100 million financing
announced by the company on March 4 from Paulson & Co. Inc.
The company will raise $175 million under the two financing
deals, which will make the Soros and Paulson funds two of the
company's largest shareholders.
The company said it expects the Soros offering to close on or
about March 11 and is subject to certain conditions, including the
approval of the Toronto Stock Exchange and the NYSE Amex LLC. The
Paulson Offering is expected to close on or about March 9.
NovaGold said it intends to use the net proceeds from the
financing to fund general exploration and development on the
company's advanced properties including Donlin Creek, Galore Creek
and Rock Creek.
Soros had doubled his bet on gold at the end of 2009, increasing
SPDR Gold Trust shares to 6.2 million. He also has shares in gold
equities including Barrick Gold Corp. (ABX) and Freeport-McMoRan
Copper & Gold Inc. (FCX).
-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483;
devon.maylie@dowjones.com
Novagold Resources (AMEX:NG)
Historical Stock Chart
From Feb 2024 to Mar 2024
Novagold Resources (AMEX:NG)
Historical Stock Chart
From Mar 2023 to Mar 2024