NOVAGOLD RESOURCES INC. ( NG.TO )(NYSE MKT:NG) ("NOVAGOLD" or "the Company") is pleased to announce that it has completed the transfer of Alaska Gold Company LLC ("AGC"), including the Rock Creek property ("Rock Creek") in and around Nome, Alaska, to Bering Straits Native Corporation ("BSNC") for $6.265 million. NOVAGOLD also announced that the State of Alaska accepted completion of the initial phase of the Rock Creek closure plan and released $6.8 million of the $20.3 million financial assurance bond associated with Rock Creek. The balance of the financial assurance has been transferred to BSNC which has assumed full responsibility and liability for the remainder of the reclamation activities requested by regulatory authorities at Rock Creek. Under the terms of the agreement, the Company has been fully indemnified by BSNC with respect to Rock Creek and all other AGC properties.
"This transaction represents a major step toward further streamlining the Company''s financial and management resources to focus on its flagship Donlin Gold project," said Gregory A. Lang, NOVAGOLD''s President and Chief Executive Officer. "I am proud of the reclamation and closure work carried out by our team at Rock Creek to achieve full compliance with the environmental standards prescribed by the State of Alaska."
