NovaGold
to Sell NovaGreenPower for $40 Million
July
31, 2008 - Vancouver, British Columbia - NovaGold Resources Inc. (AMEX, TSX: NG) today
announced that it has reached a binding agreement to sell 100% of its
NovaGreenPower subsidiary for up to $40 million to AltaGas Ltd., a Calgary
based energy infrastructure company. NovaGreenPower owns several
development-stage run-of-river hydroelectric projects located in northwest
British Columbia.
The
transaction is expected to close later today, with payment to NovaGold of $35
million on closing and an additional $5 million subject to completion of
certain conditions by February 15, 2009. NovaGold acquired the NovaGreenPower
hydroelectric assets in 2006. The carrying value to NovaGold of the assets
being sold, along with transaction costs, is approximately $6 million.
Canaccord Adams acted as financial advisor to NovaGold for this transaction.
“NovaGold’s
strategy is to focus our financial and management resources on the advancement
of our core mining projects: Donlin Creek, Galore Creek and Rock Creek,” said
Rick Van Nieuwenhuyse, President & CEO of NovaGold. “The sale of
NovaGreenPower is consistent with the strategy to realize the value of our
non-core assets for NovaGold shareholders. We believe AltaGas has the resources
and expertise to develop Forrest Kerr and the other hydroelectric projects
owned by NovaGreenPower. AltaGas’ focus on rapidly advancing these projects
will facilitate the timely development of power transmission infrastructure
that will support future power requirements of the Galore Creek
copper-gold-silver mine as well as the communities of northwest British
Columbia .”
Like
NovaGold, AltaGas is committed to community engagement and developing projects
in a responsible manner that brings real benefits to local communities and
First Nations groups. AltaGas is committed to upholding the First Nations
Agreements in place for the Forrest Kerr project, and will continue to work
with local First Nations groups as the projects progress.
Recognizing
the strength of NovaGold’s renewable energy team, AltaGas has retained the
NovaGreenPower team, including Doug Brown, Acting President of NovaGreenPower
and VP Business Development of NovaGold, and Dan Woznow, VP Operations of
NovaGreenPower. NovaGold would like to thank Doug Brown, Dan Woznow and the
other members of the NovaGreenPower team for their contributions to the Company
and wish them well in their transition to AltaGas.
About
NovaGold
NovaGold is
a precious metals company engaged in the exploration and development of mineral
properties in Alaska and Western Canada. Production is scheduled for 2008 at
the 100%-owned Nome Operations in Alaska, which includes the Rock Creek, Big
Hurrah and Nome Gold deposits. NovaGold owns 50% of the Donlin Creek gold
project in Alaska, one of the world’s largest gold deposits, with Barrick
Gold (50%). The Company also owns 50% of the Galore Creek copper-gold-silver
project in British Columbia with Teck Cominco (50%). Also in Alaska, NovaGold
is earning a 51% interest as manager of the high-grade Ambler
copper-zinc-silver-gold project in partnership with Rio Tinto. NovaGold has one
of the largest resource bases of any exploration or development-stage precious
metals company. NovaGold trades on the TSX and AMEX under the symbol NG. More
information is available online at www.novagold.net or by e-mail at info@
novagold.net.
NovaGold Contacts
Greg Johnson
Vice President, Strategic Development
Rhylin Bailie
Manager, Corporate & Investor Relations
604-669-6227 or 1-866-669-6227
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Cautionary Note Concerning Forward-Looking Statements
This press release includes certain “forward-looking
statements�� within the meaning of the United States Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical fact,
included herein including, without limitation, the anticipated timing for final
close of the NovaGreenPower sale and the anticipated disbursement of proceeds
are forward-looking statements. Forward-looking statements involve various
risks and uncertainties. There can be no assurance that such statements will
prove to be accurate, and actual results and future events could differ
materially from those anticipated in such statements. NovaGold’s
forward-looking statements are based on the beliefs, expectations and opinions
of management on the date the statements are made, and NovaGold does not assume
any obligation to update forward-looking statements if circumstances or
management’s beliefs, expectations or opinions should change except as
required by law. For the reasons set forth above, investors should not place
undue reliance on forward-looking statements. Important factors that could
cause actual results to differ materially from NovaGold’s expectations are
disclosed in NovaGold’s Annual Information Form for the year ended November
30, 2007, filed with the Canadian securities regulatory authorities,
NovaGold’s annual report on Form 40-F filed with the United States Securities
and Exchange Commission, and other information released by NovaGold from time
to time and filed with the appropriate regulatory agencies.
info@novagold.net Toll
free: 866-669-6227 www.novagold.net
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