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Novagold Resources New ( (TSE:NG) ) just unveiled an update.
Novagold Resources has upsized its previously announced bought deal private placement to 30 million common shares at US$10.00 per share, for gross proceeds of about US$300 million, anchored by a US$140 million cornerstone order from a leading European institution and supported by an over-allotment option that could lift total proceeds to roughly US$345 million. The company plans to use the funds to advance activities at its flagship Donlin Gold project in Alaska, settle a favorable prepayment option on a sizeable promissory note with Barrick Mining Corporation, and for general corporate purposes, a capital move that strengthens its balance sheet and supports further de-risking and development of one of the world’s largest undeveloped open-pit gold assets.
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 precious metals company focused on developing the Donlin Gold project in Alaska, a large, high-grade open-pit gold deposit in one of the world’s safer mining jurisdictions. The project hosts roughly 40 million ounces of gold in measured and indicated resources and is expected to produce more than one million ounces of gold annually over a 27-year mine life once in production, positioning Donlin as a major future gold producer.
Average Trading Volume: 462,707
Technical Sentiment Signal: Buy
Current Market Cap: C$5.85B
Find detailed analytics on NG stock on TipRanks’ Stock Analysis page.