NovaGold to spin-out Ambler Project into NovaCopper
NovaGold Resources Inc. (TSX:NG)(NYSE Amex:NG) provided an update on the previously announced spin-out transaction of NovaCopper, a wholly-owned subsidiary, which holds NovaGold’s interest in the Ambler project located in Alaska, U.S.
The spin-out will be transacted by way of a statutory plan of arrangement (the “Arrangement”) under the Companies Act (Nova Scotia). Pursuant to the terms of the Arrangement, among other things, 100% of the outstanding common shares of NovaCopper (“NovaCopper Shares”), will be distributed to holders of common shares of NovaGold (the “NovaGold Shareholders”) such that each NovaGold Shareholder of record on the effective date of the Arrangement will receive one NovaCopper Share for every six common shares in the capital of NovaGold held on the effective date. The Company’s options, performance share units, and deferred share units (collectively, the “Compensation Securities”) and warrants (the “Warrants”) will all be adjusted pursuant to the terms of the Arrangement, the details of which will be more particularly described in the Management Information Circular that will be mailed to NovaGold Securityholders.
The directors of the NovaGold believe that the creation of two separate public companies, one focused on gold and one focused on the copper-dominant Ambler district, will enhance their respective business operations and provide holders of NovaGold securities with additional investment choices and enhanced flexibility. NovaCopper will be free of any debt to the parent company and will be funded with US$40 million in cash.
For more information, please check the company’s news release.