NovaGold defies recession, gets new investor

January 20, 2009

Commodity Online
MUMBAI: It seems only in gold mining companies are people investing money now. At a time world is facing recession and companies are refusing to put more money in new projects, gold mining seems to have emerged as a winner.

In a new report, Canadian exploration company NovaGold has announced that it has got a new investor in Electrum Strategic Resources and it will put in arounf $60 million into the company.

The Canadian company has stated that New York-based private metals investment firm Electrum Strategic Resources will purchase 46,153,847 units of the firm for $60 million.

Vancouver-based NovaGold reported the investment agreement on January 2 and an additional $15 million financing announced on January 6 and the Toronto Stock Exchange has now accepted notice of the purchase.

Now awaiting approval from the NYSE Alternext, NovaGold hopes to close the financings by January 23 and has reduced its bridge loan from Auramet from $20 million to around $13.7 million.

Focused on gold exploration, development and mining, NovaGold has a large resource base located in North America and has increased its resource base over the past decade from 500,000 ounces of gold in 1998 to 27.7 million ounces by mid-2009.

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