ALASKA – NovaGold Resources of Vancouver has increased the size of its bought deal equity offering to US$332.5 million, a 33% jump from the US$250.8 million it announced it would raise on Feb. 1, 2012. The company will issue 35 million common shares at a price of US$9.50 per share. The offer is to close on Feb. 7. The underwriters have been granted an over-allotment option to purchase an additional 5.25 million shares.
Most of the money raised will go toward the development of the Donlin gold project, one of the world’s largest undeveloped gold deposits, 450 km northwest of Anchorage. The project is equally owned by NovaGold and Toronto-based Barrick Gold. The Donlin mine will produce more than 1.0 million oz of gold annually.
More information is available at NovaGold.com and Barrick.com.