NovaGold ticks down after $179 mln stock offering for acquisition

NovaGold Resources

08/05/2025 11:52

**  U.S.-listed shares of Canada's NovaGold Resources NG.A off 0.3% premarket to $3.90 after acquisition-related follow-on priced

** Vancouver-based firm said sold 47.85 mln shares at $3.75 for $179.4 mln gross proceeds

** Concurrently, co intends to complete private placement of ~17.2 mln shares at $3.75 to Electrum Strategic Resources, its largest shareholder with ~25% stake, and other existing holders

** NG shares on Weds closed down ~7% at $3.91 after co launched 43.5 mln share offering to help fund previously announced acquisition of additional 10% ownership in Donlin Gold and for other purposes

** Two weeks ago, Canada's Barrick Gold ABX.TO announced its exit and sale of its 50% stake in the Donlin gold Project in Alaska to billionaire John Paulson and NovaGold for up to $1.1 bln

** Citigroup, RBC, BMO and Canaccord Genuity acting as jt bookrunners for the public offering

** Through Weds, NG shares up 17.4% YTD, including ~52% gain over the past month

 (Lance Tupper is a Reuters market analyst. The views expressed are his own)

 ((lance.tupper@tr.com 1-646-279-6380))