Electrum Strategic Resources acquires units of NovaGold Resources Inc.

Thu. January 22, 2009; Posted: 06:18 PM

NEW YORK, Jan. 22, 2009 (Canada NewsWire via COMTEX) -- NG | Quote | Chart | News | PowerRating -- Electrum Strategic Resources LLC ("Electrum") announced that it has acquired ownership of 46,153,847 units (the "Units") of NovaGold Resources Inc. ("NovaGold") for the aggregate purchase price of US$60,000,001.10, representing a subscription price of US$1.30 per Unit, or approximately CDN$73,476,001.34 and CDN$1.59 per Unit, respectively, based on the noon rate of exchange on December 31, 2008, as reported by the Bank of Canada. Each Unit consists of one common share in the capital of the NovaGold (collectively, the "Shares") and one transferable common share purchase warrant (collectively, the "Warrants") entitling the holder(s) thereof to purchase one additional common share (a "Warrant Share") in the capital of the NovaGold at an exercise price of US$1.50 per Warrant Share at any time on or before 5:00 p.m. (Toronto time) on the date that is four years from the closing date. Assuming the completion of the entire amount of the US$75 million private placement announced by NovaGold on January 6, 2009, as a result of Electrum's acquisition, Electrum owns 46,153,847 Shares, representing approximately 26.3% of the issued and outstanding Shares, and owns 46,153,847 Warrants, representing 80% of the Warrants.

The Units referred to above were acquired from NovaGold and were acquired for investment purposes and Electrum and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of common shares or other securities of the NovaGold whether in the open market, by privately negotiated agreement or otherwise.

Electrum Strategic Resources LLC is located at 1370 Avenue of the Americas, 19th Floor, New York, New York 10019.

SOURCE: Electrum Strategic Resources LLC

For full details on Novagold Resources Inc (NG) click here. Novagold Resources Inc (NG) has Short Term PowerRatings of 4. Details on Novagold Resources Inc (NG) Short Term PowerRatings is available at This Link.

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