NovaGold buys Shotgun stake

At a cost of US$900,000, NovaGold Resources (NRI-T) has completed the acquisition of a 49% interest in the Shotgun and Sleitat claim groups in southwestern Alaska.

The company now expects to complete its joint-venture agreement with a unit of Cominco (CLT-T), which holds the remaining 51% interest in the Alaskan claims.

NovaGold can earn up to a 70% interest in the joint venture by contributing US$4 million in exploration expenditures over four years. This can be increased to 90% by spending another US$4 million, though Cominco retains a back-in right to earn 51% during this period. Recent exploration is aimed at defining a bulk-tonnage gold target.