A letter of intent has been signed by NovaGold Resources (TSE) with Billiton Metals Canada and LAC Minerals (TSE) which will permit NovaGold to purchase the Mount Pleasant tin-molybdenum-tungsten property in Charlotte Cty., N.B.
Halifax-based NovaGold will pay $12 million for the property and fixed assets; payment will be by way of a 15% net profits royalty from production.
NovaGold must indemnify Billiton and LAC from any future environmental liability and must pledge sufficient security to satisfy the New Brunswick government for these liabilities.
Under an option agreement terminated last October, NovaGold performed research on the Mount Pleasant mineralization.
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