NG is my biggest holding, and announced financing @$10.10 today.
NovaGold arranges $15-million offering for Galore Creek
NovaGold Resources Inc (2) (TSX:NG)
Shares Issued 63,166,389
Last Close 10/12/2004 $8.25
Wednesday October 13 2004 - News Release
Mr. Don MacDonald reports
NOVAGOLD ARRANGES C$15 MILLION FLOW-THROUGH FINANCING AT C$10.25 PER SHARE
NovaGold Resources Inc. has entered into an agreement to sell by private placement, to a syndicate of Canadian underwriters co-led by Salman Partners Inc. and Canaccord Capital Corp., and including Dundee Securities Corp., 1,485,150 flow-through common shares at a price of $10.10 (Canadian) per share (approximately $8 (U.S.) per share) for gross proceeds of $15-million (Canadian). The underwriters also have an option to increase the offering by an additional 495,050 flow-through common shares at the offering price for a further $5-million (Canadian) exercisable any time prior to closing. The underwriters have the right to substitute purchasers. NovaGold plans to use the net proceeds of this financing to advance its Galore Creek project.
The offering is scheduled to close on or about Oct. 28, 2004. The offering is subject to, among other things, receipt by NovaGold of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and the American Stock Exchange. The proceeds of the offering will be used to incur Canadian exploration expenditures on the Galore Creek project in British Columbia. The common shares sold in the offering will be subject to statutory and Toronto Stock Exchange hold periods.
In consideration for their services, the underwriters will receive a 5-per-cent cash commission and a broker warrant exercisable for common shares equal to 5 per cent of the number of flow-through common shares sold. The broker warrants will be exercisable at a price of $10.10 (Canadian) per common share for a period of 12 months following the closing date.
Currently trades @8..35. Looks like some easy money still to be made. |
