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

 
 
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