Alexco Resource Corp gets property ...
[Novagold]NG 05 Financials 3rd Quarter - SEDAR
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Related Party Transactions
In March 2005, the Company sold its subsidiary, 650399 BC Ltd (BC Ltd), which held the Company's Yukon and British Columbia assets other than the Galore Creek and its adjacent properties to Alexco Resource Corp. (Alexco), a newly formed company whose president is a director of NovaGold. Concurrent with the transfer, the Company's CEO was appointed to the board of directors of Alexco. The proceeds from the sale of BC Ltd were common shares in Alexco recorded at a fair value of $2.76 million, plus a cash payment equivalent to the cash existing in BC Ltd at the time of the sale. The sale proceeds are equivalent to the consolidated book value of the assets in BC Ltd and thus there was no gain or loss on the sale.
The Company intends to option back certain exploration rights to the Brewery Creek property, without assuming reclamation liabilities, from the purchaser, however, no final agreement has been signed at this time.
The Company has determined that it has significant influence in Alexco and has accounted for the investment using the equity method. The Company's proportionate share of income and expenses was recorded and a corresponding entry was made to the investment account. During the quarter the Company recorded $0.3 million of net losses as a result of equity accounting.
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novagold.net
Quest Announces its Financial Results for the Second Quarter 2005
QUEST CAPITAL CORP.
On March 15, 2005, the Company sold its 100% interest in the Brewery Creek property located in the Yukon property to Alexco Resource Corp., a private company (“Alexco”) in consideration for $1,800,000 paid in Alexco common shares, representing approximately 19% of Alexco’s issued and outstanding common shares. Pursuant to the purchase and sale agreement, Alexco assumed all of Viceroy Minerals Corporation’s, a wholly-owned subsidiary of the Company, obligations in respect of all claims associated with the property and all existing material contracts. In consideration therefore, Alexco received $2.5 million of the $5.0 million cash posted as security with the Yukon Territorial Government. The remaining $2.5 million of cash that was posted as security was released to Viceroy Minerals Corporation on closing.
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