NovaGold Resources Inc. (NG,NG.TO: Quote) reported first-quarter net income of C$16.8 million, down from last year's C$20.8 million in the same period. However, on a per share basis, the company reported a loss of C$0.01 in the latest quarter, narrower than the loss of C$0.15 the previous year.
This variance was mainly due to the foreign exchange gain as a result of amending the exercise price of the company's U.S. dollar denominated warrants from US$1.50 to US$1.479, which reduced foreign exchange gain for the quarter.
Looking forward, the company said it is focused on advancing its flagship 50%-owned Donlin Gold project in Alaska. The total budget of the project for 2012 is C$37.2 million of which the company's 50 percent share is about C$18.7 million.
NovaGold is spinning-off NovaCopper to the shareholders of NovaGold pursuant to the shareholder-approved Plan of Arrangement, with US$40 million to launch operations at its highly prospective Ambler District in Alaska.
The Arrangement was overwhelmingly approved at a Special Meeting of Shareholders held on March 28, 2012.
Under this Arrangement, 100 percent of the outstanding common shares of NovaCopper will be distributed to NovaGold shareholders, whereby, for every six common shares of NovaGold held immediately prior to the effective date, anticipated to be on or about April 30, 2012 shareholders will receive one NovaCopper share.
NovaCopper will be led by Rick Van Nieuwenhuyse, one of the most successful geologists in the world who is also the Founder of NovaGold. NovaCopper is expected to begin trading on the TSX and NYSE-AMEX on or about April 30th.
NovaCopper's principal asset is the highly prospective Ambler District which encompasses some of the world's richest known copper-dominant polymetallic deposits.
The Company has recently commenced a formal process to investigate opportunities to sell all or part of its interest in the Galore Creek Partnership.
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by RTT Staff Writer
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