VANCOUVER, British Columbia, Jul 8, 2004 (BUSINESS WIRE) -- SpectrumGold Inc. (TSX:SGX) and NovaGold Resources Inc. (AMEX:NG) (TSX:NG) are pleased to announce that the business combination of SpectrumGold and NovaGold by way of plan of arrangement was approved by the shareholders of SpectrumGold at the SpectrumGold Special General Meeting held today.
The resolution to approve the plan of arrangement was approved by 99.99% of the votes cast by all shareholders and 99.92% of the votes cast by the shareholders excluding NovaGold and other insiders. SpectrumGold will make application on Monday July 12, 2004 to the Supreme Court of British Columbia for a final order approving the plan of arrangement. Closing is anticipated to occur between Thursday July 15, 2004 and Monday August 16, 2004.
Under the plan of arrangement NovaGold will acquire all of the approximately 45% of the common shares of SpectrumGold not currently held by NovaGold in an exchange of shares at a ratio of 1 share of NovaGold for each 1.35 shares of SpectrumGold.
With the conclusion of this transaction NovaGold will have 62.8 million shares outstanding and three of the largest undeveloped resources in North America: the multi-million ounce Galore Creek gold-silver-copper project, the Donlin Creek project in partnership with Placer Dome, and the Ambler Project in partnership with Rio Tinto.
NovaGold is a precious metals company focused on creating value through the exploration and development of high quality mineral properties in North America. NovaGold is advancing four separate million-plus-ounce gold projects toward production in Alaska and Western Canada; including three of the largest undeveloped deposits in North America. NovaGold is well financed with no long-term debt, and one of the largest resource bases of any exploration or development stage precious metals company. More information is available online at: www.novagold.net.
Forward Looking Statements: The above contains forward looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause such differences include: changes in world gold markets, equity markets, costs and supply of materials relevant to the mining industry and the Company's projects, change in government and changes to regulations affecting the mining industry. Although we believe the expectations reflected in our forward looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.