Vancouver's NovaGold Resources Inc. (TSX:NG) is selling its NovaGreenPower subsidiary to Calgary-based AltaGas Ltd. for up to $40 million.
NovaGreenPower owns several development-stage run-of-river hydroelectric projects in northwestern B.C.
The deal is expected to close July 31 with NovaGold receiving $35 million upon closing and an additional $5 million subject to completion of certain conditions by February 15, 2009.
The company is selling its power subsidiary as part of its strategy to focus on its Donlin Creek, Galore Creek and Rock Creek mining projects. NovaGold believes AltaGas will be able to further develop the power projects and related infrastructure to support the future power requirements for its Galore Creek mine.
NovaGold's share price range during the past week: between $8.44 and $9; 52-week high: $19.99; 52-week low: $5.90.