Update: Barrick waives minimum tender condition in NovaGold bid

Vancouver – Barrick Gold (ABX-T, ABX-N) has waived the 50.1% minimum tender condition in its US$16.00-per-share bid for NovaGold Resources (NG-T, NG-X), realizing it may fall short of a desired control position in the company. However, the major will very likely emerge as the largest single shareholder having recently disclosed about 20.6 million shares, or 22.5%, of NovaGold have been deposited under its unsolicited offer.

With the condition removed, Barrick hopes to elicit the deposit of additional NovaGold shares from shareholders previously concerned about the likelihood of the minimum tender not being achieved.

NovaGold reports its management and directors along with certain key shareholders control over 40% of its shares, on a fully diluted basis, greatly reducing Barrick’s chance for control under the hostile offer.

Shares of NovaGold perked up following Barrick condition waiver, gaining about 50 on TSX trading to the $18.30-level and US36 on AMEX to trade around US$16.20 apiece.

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