NovaGold headwinds hit Galore Creek

Nov 25, 2008 | 10:05 AM |

NovaGold Resources Inc. is facing a serious cash squeeze that could result in it losing control of the Galore Creek project in British Columbia, one of the world's largest undeveloped copper-gold ore bodies.

Vancouver, British Columbia-based NovaGold said it did not pay a Canadian $1.9-million ($1.5-million) payment that was due Monday for its Galore Creek partnership with Teck Cominco Ltd. The company said it will discuss possible alternatives with Teck Cominco, but if it fails to reach a revised agreement NovaGold's interest in the partnership may be diluted to 49.8 percent from 50 percent.

That would give Teck Cominco enough of an ownership stake to call the shots on Galore Creek's future, said Greg Waller, Teck Cominco's vice president of investor relations and strategic analysis. ....

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