NOVAGOLD Launches US$200 Million Bought Deal to Advance Donlin Gold and Prepay Barrick Note

An announcement from Novagold Resources New ( (TSE:NG) ) is now available.

NOVAGOLD Resources has launched a US$200 million bought deal private placement of 20 million common shares at US$10.00 each, led by BMO Capital Markets, RBC Capital Markets and Scotiabank, including a US$140 million cornerstone order from a leading European institution and an over-allotment option that could lift total gross proceeds to about US$230 million. The company plans to use the net proceeds to fund work at its flagship Donlin Gold project in Alaska, exercise a discounted US$100 million prepayment option on a secured promissory note with Barrick Mining Corporation, and for general corporate purposes, a move that could strengthen its balance sheet, advance development of one of the world’s largest gold projects and potentially accelerate its path toward long-term production; the offering, subject to customary regulatory approvals in Canada and the United States and a six-month hold period on the shares, underscores continued institutional support for NOVAGOLD’s development strategy.

The most recent analyst rating on (TSE:NG) stock is a Hold with a C$13.00 price target. To see the full list of analyst forecasts on Novagold Resources New stock, see the TSE:NG Stock Forecast page.

Spark’s Take on TSE:NG Stock

According to Spark, TipRanks’ AI Analyst, TSE:NG is a Neutral.

The score is held back primarily by weak financial performance (no revenue, widening losses, and continued cash burn), partially offset by a stronger TTM balance sheet and generally constructive project progress and permitting momentum. Technicals are neutral-to-mixed, and valuation support is limited due to ongoing losses and no dividend yield provided.

To see Spark’s full report on TSE:NG stock, click here.

More about Novagold Resources New

NOVAGOLD Resources Inc. is a well-financed precious metals company focused on developing the Donlin Gold project in Alaska, considered one of the largest and highest-grade open-pit gold deposits globally. With approximately 40 million ounces of gold in measured and indicated resources and an expected average production of more than one million ounces per year over a 27-year mine life once in production, the company is positioned as a significant future gold producer in one of the safest mining jurisdictions in the world.

Average Trading Volume: 453,627

Technical Sentiment Signal: Buy

Current Market Cap: C$5.85B

For detailed information about NG stock, go to TipRanks’ Stock Analysis page.