NOVAGOLD Announces Closing of Upsized Bought Deal for Gross Proceeds of US$310 Million

Core Viewpoint - NOVAGOLD Resources Inc. has successfully completed an upsized bought deal private placement, raising approximately US$310 million through the sale of 31,020,000 common shares at US$10.00 each, which will be utilized for Donlin Gold project activities, settling a promissory note with Barrick Mining Corporation, and general corporate purposes [1][2]. Group 1: Offering Details - The offering consisted of 31,020,000 common shares priced at US$10.00 each, resulting in gross proceeds of approximately US$310 million, including a partial exercise of the over-allotment option and participation from two cornerstone investors [1]. - Underwriters for the offering included BMO Capital Markets, RBC Capital Markets, and Scotiabank, who received a cash fee of 5% of the gross proceeds [2]. - The common shares were offered under various exemptions from prospectus requirements in Canada, the U.S., and other jurisdictions, with a minimum hold period of six months from the closing date [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be allocated to expenditures related to the Donlin Gold project, settling a prepayment option on a promissory note with Barrick, and for general corporate purposes [2][6]. Group 3: Company Overview - NOVAGOLD is focused on the development of the Donlin Gold project in Alaska, which is recognized as one of the safest mining jurisdictions globally, containing approximately 40 million ounces of gold in the Measured and Indicated Mineral Resource categories [5]. - The Donlin Gold project is expected to produce over one million ounces of gold annually over a 27-year mine life once in production, making it one of the largest and highest-grade open-pit gold deposits [5]. - As of November 30, 2025, the promissory note with Barrick, including accrued interest, amounted to approximately US$166.3 million, with an option to prepay US$100 million by December 3, 2026 [6].