NEW YORK, Jan. 23 /CNW/ - Electrum Strategic Resources LLC ("Electrum")
announced that it has acquired ownership of 5,762,565 common shares of
NovaGold Resources Inc. ("NovaGold") from Auramet Trading, LLC ("Auramet") for
the aggregate purchase price of US$9,681,109.20, representing an acquisition
price of US$1.68 per share, or approximately CDN$12,082,023.03 and CDN$2.10
per share, respectively, based on the noon rate of exchange on January 23,
2009, as reported by the Bank of Canada.
Assuming the completion of the entire amount of the US$75 million private
placement announced by NovaGold on January 6, 2009, as a result of Electrum's
acquisition, Electrum owns 51,916,412 shares, representing approximately
28.69% of the issued and outstanding Shares. Electrum also owns 46,153,847
transferable common share purchase warrants (the "Warrants"), representing 80%
of the Warrants.
The common shares referred to above were acquired from Auramet pursuant
to the terms of a purchase and sale agreement, and were acquired for
investment purposes. Electrum and/or one or more of its affiliates may,
depending on market and other conditions, increase or decrease its beneficial
ownership of common shares or other securities of the NovaGold whether in the
open market, by privately negotiated agreement or otherwise.
For further information:
For further information: Electrum Strategic Resources LLC is located at
1370 Avenue of the Americas, 19th Floor, New York, New York, 10019.