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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30468)	12/17/2008 7:28:51 PM
From: LoneClone	Read Replies (1) \| Respond to of 194619

UPDATE 1-NovaGold says cannot explain stock rise Wed Dec 17, 2008 1:21pm EST reuters.com (In U.S. dollars, unless noted) TORONTO, Dec 17 (Reuters) - NovaGold Resources (NG.TO: Quote, Profile, Research, Stock Buzz) said on Wednesday it is not aware of any reason for the big increase in its share price over the past few days, and said it is in talks regarding possible debt and equity financing. Shares of the Canadian gold miner have more than tripled over the past week, recovering most of the ground lost in late November when the company said it had suspended operations at its only producing mine and warned it would need additional funding to pay down a bridge loan due at the end of December. A NovaGold official told Reuters on Tuesday that the company is in talks to extend a $20 million bridge loan, and the company reiterated that in a statement, saying the negotiations were with Auramet Trading LLC. "NovaGold has been in discussions with numerous parties concerning potential debt and equity financing," it said. It also said it continues to review strategic options, which it has said could include restructuring or selling assets. It warned there are no assurances any of the strategic or financing alternatives will be completed. Analysts have pointed to stronger gold prices, expectations of gold sector acquisitions, and optimism about the bridge loan as reasons for the stock gain. The stock closed at C$2.09 on Tuesday. Trading on Wednesday has been delayed due to technical problems at the Toronto Stock Exchange. ($1=$1.20 Canadian) (Reporting by Cameron French; editing by Peter Galloway)