NovaGold sells mine interests to Mantra for $18.7M

NovaGold Resources Inc. said Tuesday it will sell a majority stake in two mining operations to Mantra Mining Inc. for 20 million Canadian ($18.7 million) in common shares.

Mantra will issue 6.25 million shares, with a current market value of 10 million Canadian ($9.36 million), at the close of the transaction for NovaGold's interest in the Ambler Option Agreement, representing up to a 51 interest in the Ambler copper-zinc polymetallic project, along with its early stage base metal properties in Alaska.

An additional 6.25 million shares will be issued to NovaGold on or before 15 months from the date of closing. Mantra will also reimburse NovaGold up to 2 million Canadian ($1.87 million), for expenses incurred from June 1 to the deal's closing.

NovaGold will become the single largest shareholder in Mantra, and will have the right to nominate one director for election to the board.

Shares of the company fell 31 cents, or 4.8 percent, to $6.17 in afternoon trading.