Mining News: News Nuggets: Novagold repays debt, still has US$136M

Novagold Resources Inc. May 4 reported the payment of the remaining US$15.8 million principal balance of its 5.5 percent convertible notes and US$400,000 in interest. With US$135.5 million in cash and term deposits after the May 1 pay-off of the convertible notes principal and interest, Novagold said it has sufficient capital to complete the permitting of the Donlin Gold project in western Alaska, conduct planned studies on its 50-percent-owned Galore Creek project in northwestern British Columbia and ample financial resources to continue with existing activities for many years should gold prices remain at current levels. “Full repayment of our public debt obligations is an important milestone,” said Novagold President and CEO Gregory Lang. “Our financial strength coupled with the fact that our flagship Donlin Gold project is now well over half-way through the permitting process, places Novagold in an exceptional position to continue building value for all of its stakeholders for many years to come.”

- Shane Lasley