Mining and exploration review north of the 60th parallel

Alaska News

1 - Dome_Creek nuggets

FINANCE – Novagold Resources Inc. Jan 2 said it has received C$46.4 million on Dec. 31 from the exercise of the entirety of the 31,337,278 purchase warrants held by Electrum Strategic Resources L.P. The warrants, due to expire Jan.21, 2013, were exercisable at C$1.479 per share. Electrum and its affiliate, GRAT Holdings LLC, now hold 84,569,479, or 27.2 per cent, of Novagold’s issued and outstanding shares. Novagold said the proceeds will be used for the advancement of the Donlin Gold project in Alaska. As of Nov. 30, 2012, Novagold had C$252.2 million in cash and cash equivalents. Receipt of the additional C$46.4 million increases Novagold’s cash position, which is sufficient to satisfy all of the existing financial obligations and to pay for its share of the expected expenditures related to the Donlin Gold permitting process, anticipated to take approximately three to four years. Novagold now has 311.1 million shares outstanding and 329.7 million shares fully diluted, giving effect to the exercise of the warrants formerly held by Electrum.

FINANCE – NovaCopper Inc. Jan. 2 said that Electrum Strategic Resources’ exercise of 31,337,278 Novagold share purchase warrants has resulted in an increased stake in NovaCopper. Each Novagold warrant allows the holder to purchase one Novagold share and one-sixth of a NovaCopper share for C$1.479. These warrants were to expire Jan. 21, 2013. The entire cash proceeds of this warrant exercise have been remitted to Novagold. By exercising all of its Novagold warrants, Electrum has increased its holdings in NovaCopper to 13,261,579 shares or 25.6 per cent of the company. Electrum and its affiliate GRAT Holdings LLC now hold, in the aggregate, 14,094,912 shares, or 27.2 per cent of NovaCopper. The total number of issued and outstanding NovaCopper shares has increased to 51,887,948. The total number of fully diluted shares of the company is now 62,986,812. “We are extremely pleased to have Electrum and its affiliate increase their holdings in NovaCopper,” said NovaCopper President and CEO Rick Van Nieuwenhuyse. “We are looking forward to advancing our high-grade and growing Arctic and Bornite projects in Alaska, one of the most favorable mining jurisdictions in the world.”

JOINT VENTURE – Constantine Metal Resources Ltd. Jan. 2 provided an update on the status of its option and joint venture agreement with Dowa Metals & Mining Co., Ltd. of Japan with respect to the Palmer volcanogenic massive sulfide project in Southeast Alaska. Since announcing a non-binding letter agreement on Nov. 5, 2012, which outlined principal terms and conditions, Constantine said the prospective JV partners have made considerable and positive progress towards finalizing the agreement. To accommodate internal schedules for board approvals, Dowa and Constantine have mutually agreed to extend the deadline for concluding the agreement, and are currently targeting January for completion and signing.

FINANCE – Heatherdale Resources Ltd. Dec. 27 said it has completed the C$3 million private placement of a previously announced convertible debenture with Sino-Canada Natural Resources Fund I. Any common shares issued under the convertible debenture will be subject to a hold period ending four months after Dec.31, 2012. Additionally, Heatherdale announced it has reached agreement with the holder of a 40 per cent interest in the Delta volcanogenic massive sulfide project to extend the deadline for the completion of Heatherdale’s requirement to either fund expenditures at the Interior Alaska project or pay C$2 million under the Delta Project LLC Agreement to retain its 60 per cent interest, by one month to Feb. 1, 2013.

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