VANCOUVER - NovaGold Resources Inc. (TSX:NG) hopes to announce soon the sale of some of its non-core assets, including its green power business and exploration assets such as the Ambler project.
"It is definitely something we will get done this year," NovaGold president and CEO Rick Van Nieuwenhuyse said Thursday.
He said the company is hoping to announce a sale by the end of the current quarter.
"We have determined that our Ambler and early stage exploration assets in Alaska are not going to maximize shareholder value in NovaGold and we are looking at spinning those out into a vehicle and having an equity holding in that vehicle," Van Nieuwenhuyse said during a conference call to update the company's projects.
The Ambler copper-zinc-silver-gold project in Alaska includes--,000 hectares of claims. NovaGold, in partnership with Rio Tinto, has an option to earn a 51 per cent interest as manager of Ambler.
NovaGold also holds a portfolio of run-of-river hydroelectric projects in northwest British Columbia.
Van Nieuwenhuyse said while the assets are attractive, "we have determined it is not something NovaGold is going to develop."
He said the company is looking at a potential cash sale of this asset, and hopes to make an announcement soon.
NovaGold is eager to sell non-core assets to raise money to buy producing assets and focus on production of gold and silver.
Van Nieuwenhuyse said the company is interested in projects in North and South America.
"We are in the process of reviewing a number of opportunities," he said in an interview.
The company expects first gold production this year at its Nome operations in Alaska, which will transform it from an explorer to a producer.
Van Nieuwenhuyse said the company is "weeks" away from production, and acknowledged it was a bit of a "struggle" with delays and other issues.
"That will change the dynamic of the company," he said of the Nome project.
Its other key projects include the Galore Creek gold-silver-copper mine in northwestern British Columbia, a 50-50 joint venture with Teck Cominco Ltd. (TSX:TCK.B), and Donlin Creek in Alaska, a venture with Barrick Gold Corp. (TSX:ABX).
Galore Creek is on hold due to soaring project costs, while the companies study options to help curb costs. That study is due to be released in September.
"I'm expecting a positive outcome," Van Nieuwenhuyse said about the Galore Creek viability study.
"We have always believed in the Galore Creek project," he said in an interview, noting that it is in a stable political environment and given the high price of copper.
The Donlin Creek feasibility study is expected early in 2009.
On Thursday, NovaGold shares closed down 35 cents, or nearly four per cent, at $9 on the Toronto Stock Exchange.
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