NovaGold Resources Inc. (TSX:NG)(AMEX:NG) hopes to raise $95 million in a public offering to investors via its convertible senior notes.
The Vancouver-based gold and copper mining company said investors could earn 5.5% on semi-annual cash interest that can then be converted into the company's common shares.
NovaGold said the conversion price on the notes represents a 35% premium compared with the closing price of company shares on March 19.
The company said the notes will not be redeemable before maturity, and it can decide whether it will repay investors with shares, cash or a combination of both.
J.P. Morgan Securities Inc. is underwriting the offer.
Earlier this month, NovaGold mothballed plans to raise $130 million in a public share offering a day after making the announcement.
The company cited poor pricing conditions as the main reason for the cancellation.
NovaGold's share price range during the past week: between $7.79 and $10; 52-week high: $20.44; 52-week low: $5.90.