The transaction is expected to close later today, with payment to NovaGold of C$35 million on closing and an additional C$5 million subject to completion of certain conditions by February 15, 2009. NovaGold acquired the NovaGreenPower hydroelectric assets in 2006.

“We believe AltaGas has the resources and expertise to develop Forrest Kerr and the other hydroelectric projects owned by NovaGreenPower. AltaGas’ focus on rapidly advancing these projects will facilitate the timely development of power transmission infrastructure that will support future power requirements of the Galore Creek copper-gold-silver mine as well as the communities of northwest British Columbia ,” said NovaGold president and CEO, Rick Van Nieuwenhuyse.

In addition to the potential of providing power to Galore Creek NovaGreenPower will provide up to C$40 million toward achieving NovaGold’s recently unveiled strategy to focus on the advancement of their core mining assets.

“Our corporate objective is to build a premier North American precious metals company,” Van Nieuwenhuyse said during a July 24 corporate conference.

To realize this objective NovaGold plans to divest its interest in non-core asset and focus on Rock Creek, Donlin Creek and Galore Creek.

NovaGold spokeswoman Rhylin Bailie told Mining News July 30, “We are looking at spinning Ambler and our other non-core early-stage properties into a separate vehicle that we would retain an interest in. Our business strategy is to realize the best value for shareholders from our non-core assets, and those properties really get lost under the main NovaGold umbrella when compared to Rock Creek, Donlin Creek and Galore Creek.”