The latest payment from Newmont increased NOVAGOLD’s cash position by $25 million, which consisted of approximately $109 million of cash and term deposits as of May 31, 2023
NOVAGOLD Receives $25 Million from Newmont. (Credit: S K from Pixabay)
NOVAGOLD RESOURCES INC. (NYSE American, TSX: NG) (“NOVAGOLD” or “the Company”) received $25 million from Newmont Corporation (NYSE: NEM, TSX: NGT) (“Newmont”) as per the 2018 Share Purchase Agreement (the “Agreement”) in which NOVAGOLD sold its 50% interest in the Galore Creek project (“GCP”) in British Columbia, Canada. All amounts are in U.S. dollars.
Under the terms of the Agreement1, total consideration payable by Newmont was up to $275 million. NOVAGOLD received $100 million upon closing, $75 million in July 2021 and this most recent receipt of $25 million.
The latest payment from Newmont increased NOVAGOLD’s cash position by $25 million, which consisted of approximately $109 million of cash and term deposits as of May 31, 2023. As a result of the successful sale of the GCP, NOVAGOLD materially increased its treasury, providing the Company with a strong financial foundation to advance its 50%-owned Donlin Gold project in Alaska.
Source: Company Press Release