TORONTO (Reuters) - NovaGold Resources (NG.TO) NG.A said on Thursday it plans to boost the size of a recently announced equity offering that will be used to finance the development of its Donlin and Ambler gold/copper projects in Alaska and its Galore Creek project in British Columbia.
Novagold said it plans to issue up to 40.25 million shares at a price of $9.50 a share. The offering, being led by RBC Capital Markets and J.P. Morgan Securities, is set to raise roughly $380 million.
The announcement sent Novagold’s shares tumbling about 8 percent in early trading to C$9.51 on the Toronto Stock Exchange. Its U.S.-listed stock fell 8.3 percent to $9.48.
The company had said on Wednesday it planned to sell up to 30.36 million shares at $9.50 each.
The common shares will be offered to the public in Canada and the United States through the underwriters or their affiliates, the company said.
Reporting By Euan Rocha; Editing by Peter Galloway