Novagold Closes $179M Upsized Public Offering of Common Shares.

NOVAGOLD Resources Inc. has closed a $179.4 million upsized public offering of 47.85 million common shares at $3.75 per share. The company also closed a private placement for 17.17 million common shares, bringing the total gross proceeds to approximately $196.6 million. The underwriters have a 30-day option to purchase up to 7.18 million additional shares.

NovaGold Resources Inc. (NG) has successfully closed a $179.4 million public offering of 47.85 million common shares at $3.75 per share. The company also completed a private placement for 17.17 million common shares, bringing the total gross proceeds to approximately $196.6 million. The underwriters have a 30-day option to purchase up to 7.18 million additional shares.

The proceeds from the public offering will be used to fund the purchase price for NovaGold’s previously announced acquisition of an additional 10% ownership interest in Donlin Gold and to update the feasibility study. The stock price slumped 5% on Tuesday during after-market hours of trading following the announcement of the offering [1].

The company's plans for the year 2025 include a $43 million budget for advancing the Donlin Gold project, which is expected to boost exploration and development efforts. NovaGold Resources has been positively impacted by rising gold prices and increased U.S. drilling activities, which have lifted the company's outlook [2].

References:
[1] https://seekingalpha.com/news/4442813-novagold-resources-dips-5-on-stock-offering
[2] https://seekingalpha.com/news/4442813-novagold-resources-dips-5-on-stock-offering