An agreement-in-principle has been reached by NovaGold Resources (TSE) and the National Bank of Canada concerning the restructuring of a $4-million loan, owed by a wholly owned NovaGold subsidiary, Murray Brook Resources.
The loan was incurred to finance the completion of the Murray Brook gold-silver mine in New Brunswick. The mine operated until May, 1992, and, while the interest on the loan is in good standing, the principal amount of more than $1.9 million is in arrears.
The restructuring agreement is subject to certain conditions, including regulatory approval. However, NovaGold has been advised that the Nova Scotia Securities Commission will not approve the restructuring as proposed. The reasons for the commission’s decision will be disclosed at a later date. In the meantime, all concerned parties will continue to try to achieve a restructuring agreement.
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