NOVAGOLD Announces US$200 Million Bought Deal Financing

Core Viewpoint - NOVAGOLD Resources Inc. has announced a private placement offering of 20 million common shares at a price of US$10.00 per share, aiming for gross proceeds of approximately US$200 million, with a cornerstone order of US$140 million from a European institution [1][2]. Group 1: Offering Details - The offering is structured as a bought deal with underwriters BMO Capital Markets, RBC Capital Markets, and Scotiabank [1]. - An over-allotment option allows underwriters to purchase an additional 15% of the shares, potentially increasing total gross proceeds to approximately US$230 million [1]. - The expected closing date for the offering is around February 5, 2026, pending necessary regulatory approvals [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be allocated to expenditures related to the Donlin Gold project, settlement of a promissory note with Barrick Mining Corporation, and general corporate purposes [2]. Group 3: Company Overview - NOVAGOLD is focused on the development of the Donlin Gold project in Alaska, which is recognized as one of the largest and highest-grade open-pit gold deposits globally, with approximately 40 million ounces of gold in Measured and Indicated Mineral Resource categories [6]. - The Donlin Gold project is projected to produce over one million ounces of gold annually over a 27-year mine life once in production [6].