Novagold dips on $200 mln equity financing

Royal Bank of Canada

22/01/2026 22:05

** U.S.-listed shares of Novagold Resources NG.A down 2.6% post-market to $10.22 after news of $200 mln equity raise

** Canadian precious metals co says bookrunners BMO, RBC and Scotiabank agreed to buy 20 mln shares, on a bought deal basis by way of private placement, at $10.00

** Offering included a $140 mln cornerstone order from a leading European institution, co says

** NG plans to use net offering proceeds for expenditures associated with Donlin Gold project located in Alaska, settlement of its prepayment option on promissory note with Barrick Mining ABX.TO, and general corporate purposes

** U.S.-listed shares on Thurs closed up 5% at $10.49

** Early Thurs, co reported Q4 net loss of $15.6 mln, $4.1 mln higher than yr-ago period, citing higher Donlin Gold expenses and increased professional fees

** It has ~407 mln shares outstanding

** Through Thurs, shares have more than tripled over the past year

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

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