NovaGold sells stake in the project Ambler Mantra Mining for $ 20 million in stock
VANCOUVER - NovaGold Resources Inc. (TSX: NG) is the sale of its interest in the Ambler copper-zinc project from Alaska to Mantra Mining Inc. (TSX-V: MAN) in 20 million stock deal that makes the Gold Miner mantra the largest shareholder.
Under the agreement announced Tuesday, Mantra will acquire Nova Gold 51 per cent in Ambler Thursday, with NovaGold’s early stage of the properties of base metals in Alaska for 6.25 million shares at a value current market of 10 million.
Another 6.25 million shares of Mantra NovaGold will be published after the closing date. Mantra also will reimburse NovaGold for a maximum of $ 2 million in costs Ambler.
Under a separate deal with subsidiaries of Rio Tinto PLC, mantra to purchase all the claims in the Ambler project $ 29 million.
Once the transaction closes, NovaGold will become the majority shareholder of Mantra, with 11.32 per cent stake and have the right to appoint directors.
NovaGold President and CEO Rick Van Nieuwenhuyse is already a director of Mantra.
NovaGold said the sale reflects its strategy to maximize the value of its major mining projects: Donlin Creek gold project, which is a joint venture with Barrick Gold Corp.
(TSX: ABX), the Galore Creek copper-gold project with Teck Cominco (TSX: TCK.B) and its wholly-owned Nome Operations.
“NovaGold believes that 100 per cent interest in the Ambler project and a focused exploration and development program, Mantra will be able to add value assets as they progress through the evaluation Economic and licensing process.
“NovaGold is considering other strategic options to maximize value for its shareholders, including the potential sale of interests in part or all of any of its core projects to a third party, strategic investments , A business combination, the spin of its assets or sale of the company.
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[...] ( TSX : NG) is the sale of its interest in the Ambler copper-zinc project from Alaska to Mantra Mining Inc. ( TSX -V: MAN) in 20 million stock deal that makes the Gold Miner mantra the largest shareholder. Under the agreement announced …[Continue Reading] [...]