VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/10/13 -- NOVAGOLD RESOURCES INC. (TSX: NG)(NYSE MKT: NG) today announced its plans to modify the quorum provisions of the proposed articles to continue the Company under the Business Corporations Act (British Columbia) from under the Companies Act (Nova Scotia) following approval of the Continuance Resolution at the Company's Annual and Special Meeting of Shareholders to be held on May 29, 2013 at 3:00 pm (Pacific Time).
Upon further review of the proposed articles, NOVAGOLD became aware that the quorum requirements for shareholders and board meetings in the proposed articles may not be consistent with Canadian best governance practices. Accordingly, the Company is revising the proposed articles to be placed before its shareholders to provide that a quorum for shareholders meetings will be two persons representing at least 25% of the issued shares entitled to be voted at the meeting and that a quorum for the transaction of business by the directors is at least half of the number of directors. A copy of the revised proposed articles will be filed by the Company on SEDAR and EDGAR.
NOVAGOLD is a well-financed precious metals company engaged in the exploration and development of mineral properties in North America. Its flagship asset is the 50%-owned Donlin Gold project in Alaska, one of the safest jurisdictions in the world. With a total of approximately 34 million ounces(1) of gold in the Proven and Probable reserve categories (505 million tonnes at an average grade of approximately 2.1 grams per tonne), Donlin Gold is regarded to be one of the largest, and most prospective known gold deposits in the world. According to the updated Feasibility Study (as defined below), once in production, Donlin Gold should average approximately 1.5 million ounces of gold per year for the first five years, followed by decades of more than one million ounces of gold per year on a 100% basis. The Donlin Gold project has substantial exploration potential beyond the designed footprint which currently covers only three kilometers of an approximately eight-kilometer strike length of the property. Permitting is underway for the Donlin Gold project, a clearly defined process expected to take approximately 3 years. NOVAGOLD also owns 50% of the Galore Creek copper-gold-silver project located in northern British Columbia. According to the 2011 Pre-Feasibility Study, Galore Creek is expected to be the largest copper mine in Canada, a tier-one jurisdiction, when it is put into production. NOVAGOLD is currently evaluating opportunities to sell all or a portion of its interest in Galore Creek and would apply the proceeds toward the development of Donlin Gold. NOVAGOLD has a strong track record of forging collaborative partnerships, both with local communities and with major mining companies.
(1) Proven and Probable reserves of 0.57 million ounces and 33.28 million ounces respectively (504.8 million tonnes at an average grade of approximately 2.09 grams per tonne) which are included in Measured and Indicated resources of 0.63 million ounces and 38.38 million ounces respectively (541 million tonnes at an average grade of approximately 2.2 grams per tonne). See the Feasibility Study for further information.
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