Oct. 20, 2011 - 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.