NovaGold Resources raises $100M in offering

Posted In: Materials

By The Associated Press

Tuesday, March 9, 2010

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Canadian gold miner NovaGold Resources Inc. on Tuesday said it had raised about $100 million after completing its offering of 18.2 million shares at $5.50 each.

The company sold the shares to several investment funds managed by Paulson & Co. It plans to use the money to finance general exploration and development, and for general corporate purposes, including potential acquisitions.

The completion of the offering comes just a day after the gold miner said it wanted to raise $75 million by issuing 13.6 million new shares to be sold to private investment fund Quantum Partners, which is managed by Soros Fund Management.

That sale is expected to close by Thursday, the company said.

In afternoon trading, NovaGold shares rose 45 cents, or 7.1 percent, to $6.75. The shares have traded between $2.11 and $6.98 over the past year.

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