Vancouver's NovaGold Resources Inc. (TSX:NG) has received another US$15 million in equity financing from New York-based Electrum Strategic Resources LLC after it sold an additional 11.5 million units at US$1.30 per unit.
The deal increased the total private financing to US$75 million from Electrum.
NovaGold announced January 2 that it had received US$60 million from Electrum, a member of the Electrum Group of Companies, which holds one of the world's largest portfolios of precious metals exploration projects.
When the financing deal is closed, Electrum will become NovaGold's largest shareholder. It will own more than 30% of the company's shares and about 46% of the company if all Electrum's warrants are fully exercised.
With only $10 million in cash at the end of November, NovaGold was on the verge of running out of cash by the end of 2008. In mid-December, the company extended the maturity date of a $20 million bridge loan with Auramet Trading LLC that was due in December.
NovaGold's share price range during the past week: between $1.77 and $2.46; 52-week high: $12.25; 52-week low: $0.475.