NovaGold Sells Placer Gold Claims
March 14, 2011 - Vancouver, British Columbia -
NovaGold Resources Inc. (NYSE-AMEX: NG, TSX:
NG) today announced that it has entered into an agreement to sell its alluvial
gold properties comprising 11,500 acres of fee-simple United States patented
mining claims near Nome, Alaska. The claims are held by NovaGold's wholly-owned
subsidiary, Alaska Gold Company. Nome Gold Alaska Corp. will pay Alaska Gold
Company US$21 million in three installments, and will also provide a letter of
credit for US$4 million as an environmental reclamation bond.
"We are executing our strategy of bringing value
from our non-core assets,��� said Rick Van Nieuwenhuyse, President & CEO of NovaGold.
"NovaGold is focused on advancing its Donlin and Galore projects toward
production with the objective of becoming a low-cost million-ounce-a-year gold
producer.��
NovaGold is also soliciting offers for the balance of
its land package around Nome, Alaska, including valuable in-town real estate
lots and substantial sand and gravel holdings, as well as its Rock Creek and
Big Hurrah gold properties.
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About NovaGold
NovaGold is a precious metals company engaged in the
exploration and development of mineral properties in Alaska, U.S.A. and British
Columbia, Canada. The Company is focused on advancing its two core properties,
Donlin Creek and Galore Creek, with the objective of becoming a low-cost
million-ounce-a-year gold producer, and offers superior leverage to gold with
one of the largest reserve/resource bases of any junior or mid-tier gold
company. NovaGold has a strong track record of expanding deposits through exploration
success and forging collaborative partnerships, both with local communities and
with major mining companies. The Donlin Creek project in Alaska, one of the
world's largest undeveloped gold deposits, is held by a limited liability
company owned equally by NovaGold and Barrick Gold U.S. Inc. The Galore Creek
project in British Columbia, a large copper-gold-silver deposit, is held by a
partnership owned equally by NovaGold and Teck Resources Limited. NovaGold also
owns a 100% interest in the high-grade Ambler copper-zinc-gold-silver deposit
in northern Alaska and has other earlier-stage exploration properties. NovaGold
trades on the TSX and NYSE-AMEX under the symbol NG. More information is
available at www.novagold.net or by emailing info@novagold.net.
NovaGold Contact
Rhylin Bailie
Director, Communications & Investor Relations
604-669-6227 or 1-866-669-6227
Cautionary Note Regarding 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, plans for and intentions with
respect to the company's use of proceeds from the sale of Securities and
NovaGold's future operating or financial performance, 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. Important factors that could cause actual results to differ
materially from NovaGold's expectations include the uncertainties involving the
need for additional financing to explore and develop properties and
availability of financing in the debt and capital markets; uncertainties
involved in the interpretation of drilling results and geological tests and the
estimation of reserves and resources; the need for continued cooperation with
Barrick Gold and Teck Resources in the exploration and development of the
Donlin Creek and Galore Creek properties; the need for cooperation of
government agencies and native groups in the development and operation of
properties; the need to obtain permits and governmental approvals; risks of
construction and mining projects such as accidents, equipment breakdowns, bad
weather, non-compliance with environmental and permit requirements,
unanticipated variation in geological structures, ore grades or recovery rates;
unexpected cost increases; fluctuations in metal prices and currency exchange
rates; the outcome of litigation pending against the company; and other risk
and uncertainties disclosed in NovaGold's Annual Information Form for the year
ended November 30, 2010, filed with the Canadian securities regulatory
authorities, and NovaGold's annual report on Form 40-F filed with the United
States Securities and Exchange Commission and in other NovaGold reports and
documents filed with applicable securities regulatory authorities from time to
time. NovaGold's forward-looking statements reflect the beliefs, opinions and
projections on the date the statements are made. NovaGold assumes no obligation
to update the forward-looking statements of beliefs, opinions, projections, or
other factors, should they change.