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"We are in discussions with the parties and looking to restructure that before the deadline," Greg Johnson, the gold mining company's vice-president of strategic development, said in an interview.
Asked if he is optimistic the loan can be refinanced, he said: "Yes. (The parties) are working with us."
Vancouver-based Novagold warned three weeks ago it couldn't afford to repay the loan, which is due at the end of December, and would have to find alternative means to stay afloat, including refinancing, selling assets and restructuring. The news sent the company's stock down 80 percent.
Johnson said that since then, the climate for lending and financing has improved. The company's stock, which has also been helped by higher gold prices and signs of M&A returning to the sector, have tripled in the past four sessions.
NovaGold, whose main asset is a 50 percent stake in the Donlin Creek gold project in Alaska, which is a joint venture with Barrick Gold, were up 29 Canadian cents at C$1.98.
Paolo Lostritto, an analyst at Wellington West, said optimism that the loan will be extended was helping fuel the shares.
"If they can extend that bridge loan, then people will know that this is not a dead duck," he said.
($1=$1.22 Canadian)
(Reporting by Cameron French; editing by Peter Galloway) Keywords: NOVAGOLD/
(cameron.french@thomsonreuters.com; 416-941-8199: Reuters Messaging: cameron.french.reuters.com@reuters.net)
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