Vancouver —
NovaGold already owns 56% of SpectrumGold and will acquire the remaining 11.6 million shares outstanding by issuing one of its shares for every 1.35 SpectrumGold shares held. This represents a 35% premium over the 90-day average trading price of the shares of both companies.
Provided regulators approve the transaction, NovaGold will then hold interests in three of the largest undeveloped mineral deposits in North America: the Donlin Creek gold project in Alaska; the Galore Creek copper-gold-silver project in northwestern British Columbia; and the Ambler Creek polymetallic project in Alaska. It would also hold a portfolio of North American exploration projects and $60 million in cash.
SpectrumGold recently expanded its land position in the Galore Creek area by signing several property agreements and staking new claims totalling 200 sq. km.
The company’s agreement with
SpectrumGold also signed an agreement with
The company also staked 168 sq. km of claims in the area surrounding Galore Creek, and is already earning an 80% interest in the adjoining Copper Canyon property from
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