Novagold Resources Inc (NG) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Novagold Resources Inc. faces a significant business risk due to the contractual reduction of its voting interests in Donlin Gold, despite owning 60% of the membership interests. The A&R LLC Agreement stipulates that Novagold’s voting rights are reduced by an absolute 10%, while Paulson’s are increased by the same margin, resulting in equal governance rights. This arrangement diminishes Novagold’s ability to assert its proportionate rights and could potentially decrease the value attributed to its interest in the project. Consequently, this imbalance in voting power may impact Novagold’s strategic influence and financial outcomes at Donlin Gold.
The average NG stock price target is $6.05, implying 63.51% upside potential.
To learn more about Novagold Resources Inc’s risk factors, click here.