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Balance sheet
We take dilution seriously. Fortunately, NOVAGOLD’s strong balance sheet affords a rare opportunity in our space to satisfy foreseeable project expenses without seeking additional equity from the market. With approximately $148.5 million in cash and term deposits as of November 30, 2019, we can focus on moving Donlin Gold forward while enhancing its value through permitting and optimization work. Note that this amount does not include an additional $100 million expected to come from Newmont in the next three years, or a further $75 million contingent payment on top of that, which we could receive if and when the Galore Creek project owners approve a construction plan. Based on these commitments and projected needs, the company believes it has sufficient funds to advance Donlin Gold without the need to raise capital until a construction decision is made.
Advancing the vision in 2020
Looking ahead to 2020, Donlin Gold will embark on the project’s largest drill program in twelve years, with 80 holes totaling 22,000 meters planned in the ACMA and Lewis deposit areas. The program’s objective is to continue to gather data that should increase our understanding of the geologic model and high-grade mineralization controls that have the potential to benefit the project when the owners decide to update the Donlin Gold feasibility study and initiate the engineering work necessary to advance the project design from feasibility level to basic, then detailed, engineering.
In conclusion, I wish to thank the experienced team of professionals at NOVAGOLD, Donlin Gold, and Barrick for their passion and commitment to the project. Their steadfast determination, coupled with the deep and decades-long support and engagement of Calista and TKC, are critical ingredients required for the successful achievement of our collective vision. I also would like to express my sincere appreciation to my dedicated colleagues on the NOVAGOLD Board for their support, constant engagement, and commitment to continual improvement and best governance practices. It is a pleasure to serve alongside you all. My gratitude also goes
to the various state agencies for their diligent and professional work and adherence to well-established regulatory procedures.
Finally, to our shareholders, I thank each and every one of you for your unwavering support, engagement, patience, and encouragement. NOVAGOLD will not only do its utmost to deliver on its strategy and promises, but will continue to realize Donlin Gold’s unparalleled investment opportunity in a manner that you can truly be proud of.
Gregory A. Lang
President and CEO
February 3, 2020
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