Vancouver's NovaGold Resources Inc. (TSX:NG) has settled its lawsuits with Barrick Gold and completed several transactions with Barrick to develop the Donlin Creek gold project in southwestern Alaska.
NovaGold and Barrick's new Donlin Creek LLC joint venture will lead the project's development. Both companies will have a 50% stake in the company and two directors on Donlin's board of directors.
In August 2006, NovaGold filed a suit against Barrick alleging breach of contract and breach of fiduciary duty with respect to Barrick's requirements to earn an additional 40% interest in the Donlin project.
In July, an Alaskan court dismissed NovaGold's suit, and both companies came to an agreement in November.
As part of the settlement with Barrick, NovaGold has agreed to reimburse Barrick about US$63.5 million. The amount represents about half of Barrick's expenditures at Donlin Creek from April 1, 2006, to November 30, 2007.
NovaGold will also purchase via Galore Creek Mining Corp., claims in properties adjacent to the Galore Creek project owned by Pioneer Metals Corp., a Barrick subsidiary. NovaGold owns 50% of Galore Creek in partnership with Teck Cominco, which owns the other 50%.
NovaGold's share price range during the past week: between $9.25 and $10.09; 52-week high: $20.44; 52-week low: $8.59.