In a February 17 BC Supreme Court notice of civil claim, Vancouver-based gold exploration firm NovaGold Resources Inc. (TSX:NG) is seeking to clarify a written loan contract it had with its Alaska Gold Co. subsidiary regarding the development of the Rock Creek gold project near Nome, Alaska.
The contract involved the terms of previous and future lending arrangements in which NovaGold advanced capital to Alaska Gold to commercialize Rock Creek.
Earlier on Monday, Business in Vancouver reported that NovaGold was suing Alaska Gold for the return of the loans.
But while Alaska Gold is named as a defendant in the suit, NovaGold said in a statement to BIV that it applied to the BC Supreme Court with the consent and support of Alaska Gold solely to clarify the terms of certain outstanding shareholder loans as originally agreed to by the parties.
Stated NovaGold: “The requested clarification order was granted today and the proceedings are now at an end. The action was not to compel the repayment of loans. These loans remain outstanding, and NovaGold has indicated that it has no intention of demanding payment.”
After environmental and technical setbacks, Rock Creek was put on hold in November 2008.
NovaGold’s primary focus is developing its projects at Donlin Creek in Alaska and Galore Creek in B.C.