NovaGold Sells Ambler Project and Early Stage Base Metal Properties to Mantra Mining For $20 Million in Shares

NovaGold Resources Inc. , today announced that it has reached a binding agreement to sell its interest in the Ambler Option Agreement, representing up to a 51% interest in the Ambler copper-zinc polymetallic project, along with its early stage base metal properties in Alaska for $20 million in common shares of Mantra Mining Inc. (CDNX:MAN.V - News). Under the agreement Mantra will issue 6.25 million common shares having a current market value of $10 million to NovaGold on closing of the transaction, with an additional 6.25 million common shares to be issued to NovaGold on or before 15 months from the date of closing. Mantra has also agreed to reimburse NovaGold for up to $2 million for all direct expenditures incurred by NovaGold on the Ambler Project from June 1, 2008 up to the date the transaction is closed. Under the Ambler Option Agreement, NovaGold would have been required to make an additional investment of US$7 million to earn its interest in the project. read more

Source: NovaGold Resources Inc.