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NovaGold (NG) Enters $250.8M Bought Deal Offering; Will Sell 26.4M Common at $9.50/Share

February 1, 2012 4:15 PM EST
NG Hot Sheet
Overall Analyst Rating:
    BUY (= Flat)
NovaGold Resources Inc. (AMEX: NG) has entered into an agreement with a syndicate of underwriters, led by RBC Capital Markets and J.P. Morgan Securities LLC under which they have agreed to purchase from NovaGold and sell to the public 26,400,000 Common Shares at a price of US$9.50 per Common Share.

The offering will result in gross proceeds to NovaGold of approximately US$250.8 million. The offering is expected to close on or about February 7, 2012. NovaGold has granted the underwriters an over-allotment option to purchase up to an additional 3,960,000 Common Shares at the same price, exercisable in whole or in part at any time for 30 days following closing of the offering.


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