Form 51-102F3
MATERIAL CHANGE REPORT
Item 1. | Name and Address of Reporting Issuer |
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NovaGold Resources Inc. (“NovaGold” or the “Company”) | |
Suite 2300 | |
200 Granville Street | |
Vancouver, BC V6C 1S4 | |
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Item 2. | Date of Material Change |
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March 4, 2010 | |
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Item 3. | News Release |
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A press release announcing the material changes referred to in this report was disseminated by Marketwire on March 4, 2010 and filed on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. | |
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Item 4. | Summary of Material Change |
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On March 4, 2010, NovaGold announced that it has entered into an agreement with Paulson & Co. Inc. (“Paulson”), on behalf of several investment funds managed by Paulson, to issue and sell 18,181,818 common shares of the Company at a price of US$5.50 per common share for gross proceeds of US$99,999,999. | |
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Item 5. | 5.1 - Full Description of Material Change |
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On March 4, 2010, NovaGold announced that it has entered into an agreement with Paulson & Co. Inc. (“Paulson”), on behalf of several investment funds managed by Paulson, to issue and sell 18,181,818 common shares of the Company at a price of US$5.50 per common share for gross proceeds of US$99,999,999 (the “Offering”). | |
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The Company intends to use the net proceeds from the Offering to fund general exploration and development on the Company’s advanced properties including Donlin Creek, Galore Creek and Rock Creek, its early-stage Ambler property, and for general corporate purposes, including funding potential future acquisitions. Closing of the Offering is expected to occur on or about March 9, 2010, and is subject to certain conditions, including the approval of the Toronto Stock Exchange and the NYSE Amex LLC. | |
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The Offering, which is non-brokered, is being made under a prospectus supplement (the “Supplement”) to the Company’s base shelf prospectus dated December 30, 2009 (the “Shelf Prospectus”). NovaGold has filed the Shelf Prospectus with certain Canadian securities regulatory authorities and a registration statement with the United States Securities and Exchange Commission. NovaGold has filed the Supplement with the British Columbia Securities Commission which contains additional information about the Offering. |
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5.2 - Disclosure for Restructuring Transactions | |
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None. | |
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Item 6. | Reliance on subsection 7.1(2) and (3) of National Instrument 51-102 |
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Not applicable. | |
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Item 7. | Omitted Information |
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Not applicable. | |
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Item 8. | Executive Officer |
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The following senior officer of NovaGold is knowledgeable about the material change and may be contacted by any of the Securities Commissions with respect to the change: | |
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Robert J. (Don) MacDonald | |
Telephone: (604) 669-6227 | |
Fax: (604) 669-6272 | |
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Item 9. | Date of Report |
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March 5, 2010 |