Electrum Strategic Resources LLC invests US$60 Million in NovaGold Resources

On January 22, 2009, Electrum Strategic Resources LLC completed a US $60 million private placement acquisition of 46,153,847 units created and issued by NovaGold Resources Inc. (the "Company") (TSX: NG, NYSE Alternext: NG). The units were sold for a price of US $1.30 per unit for gross proceeds of US $60 million. Each unit consists of one common share of NovaGold and one common share purchase warrant of NovaGold. Each warrant entitles the holder to acquire one common share of NovaGold for an exercise price of US $1.50 prior to 5:00 p.m. (EST) on January 21, 2013. The Company closed a majority of the additional US $15 million private placement of units.

The net proceeds of the financing were used to repay certain outstanding principal and interest owing under an existing bridge loan, to finance continuing exploration and development activities in Alaska and in British Columbia, and to further examine, develop and, if warranted, re-activate a mine near Nome, Alaska and for general corporate purposes. 

The Aird & Berlis LLP team was led by Martin Kovnats and included: Jeffrey Merk, Morli Shemesh and Aaron Collins (Corporate/Commercial), Bill VanderBurgh (Regulatory) and Barbara Worndl (Tax).