VANCOUVER – NovaGold Resources Inc. (TSX:NG) has signed a deal with NANA Regional Corp. Inc., an Alaska Native corporation, regarding the mining company’s Ambler project.
The agreement consolidates NovaGold’s and NANA’s land holdings into a 180,000-hectare land package and provides a framework for the exploration and development of region.
Under the deal, NANA has the option to participate as a joint-venture partner or receive a net proceeds royalty upon establishment of any mining operation, while NovaGold has the rights to lease lands for mining operations.
The deal also includes a commitment by NovaGold to promote employment for NANA shareholders.
“This agreement ratifies the co-operation that has been and will be essential to the successful development of these significant mineral deposits,” NovaGold president and chief executive Rick Van Nieuwenhuyse said in a statement.
“Notably, both parties are contributing resources to create the opportunity to take a consolidated and cost-effective approach to exploring and developing one of the richest and most-prospective copper districts in one of the safest geopolitical jurisdictions in the world.”
The Ambler district is home to deposits that contain copper, zinc, lead, gold and silver over a 110-kilometre mineralized belt.
NANA was formed in 1971 under the Alaska Native Claims Settlement Act and owns mining claims as well as a large track of land in the surrounding area.
In addition to Ambler, NovaGold is developing several projects in Alaska and British Columbia including its Donlin Gold project in partnership with Barrick Gold (TSX:ABX) and the Galore Creek project in partnership with Teck Resources (TSX:TCK.B).
Local news from metronews.ca/vancouver
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