First you sell 1/2 the company for 75 million:
NovaGold Resources Inc. (the "Company" or "NovaGold") (Toronto:NG.TO - News)(AMEX:NG - News) announced today that, further to its press release of January 2, 2009, the Company has increased its financing by the full $15 million bringing the total to US$75 million. NovaGold has entered into binding agreements with the additional institutional investors referred to in the Company's previous news release providing for the sale to such investors, on a private placement basis, of an aggregate of 11,538,461 Units for a purchase price of US$1.30 per Unit, for gross proceeds of US$15 million. Each Unit consists of one common share of NovaGold and one common share purchase warrant of NovaGold ("Warrant"). Each Warrant entitles the holder thereof to acquire one common share of NovaGold for an exercise price of US$1.50 prior to 5:00 p.m. (EST) on the fourth anniversary of the closing date.
But spin it as a positive:
<<NovaGold has struggled with tight credit conditions over the past year. The company faced a cash crunch in December, but managed to refinance a $20 million bridge loan, and then win $60 million in financing from privately held Electrum Strategic Resources.>>
See, they WON financing... uhmmm guyz, you LOST! And it wasn't financing, you gave a way 1/2 the company!!
Then you tout your 4.5 BILLION gold mine around town:
<<Donlin Creek gold project will cost $4.5bn to build
NovaGold says the feasibility study for the Donlin Creek gold mine will cost $4.5 billion and will produce 1.6 million ounces of gold a year over the first five years.>>
Ummm, who's going to build that?? Mr. Market says naaaaaaaaa!
Oh wait, maybe your "partner"?
NovaGold Resources (NG.TO: Quote) said on Tuesday that its 50 percent owned Donlin Creek gold project in Alaska holds reserves of 29.3 million ounces and should produce an average of 1.6 million ounces of gold a year over the first five years after it starts production in 2015.In a feasibility study, the Canadian company said the project -- a joint venture with Barrick Gold ..... snip.
Oh, the partner that you DIDNT LET BUY YOU FOR 5X the current market cap? THAT partner? Course maybe they'll be more interested now... let's hope so. Cause yer BROKE again! lol
DAK |
