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NovaGold sues Barrick over misuse of confidential information in bid for Pioneer
Company Press Release
via Market Wire
Monday, August 14, 2006
VANCOUVER, British Columbia -- NovaGold Resources Inc. today announced that it has filed a lawsuit in the Supreme Court of British Columbia against Barrick Gold Corp. The lawsuit claims, among other things, that in making a competing bid for Pioneer Metals Corp., Barrick misused confidential information belonging to NovaGold. The lawsuit seeks a court order that any shares of Pioneer purchased by Barrick under its bid are held under a constructive trust for the benefit of NovaGold.
Pioneer owns the subsurface mineral rights on the Grace property adjacent to NovaGold's Galore Creek project. On June 14, 2006, after unsuccessful negotiations with Pioneer to purchase the Grace claims directly, the NovaGold Board of Directors approved making an offer to acquire all the outstanding common shares of Pioneer. On June 16, NovaGold provided Barrick with certain non-public information about Galore Creek. The NovaGold offer for Pioneer was filed on June 19. On July 24, Barrick announced its own offer for Pioneer, coincident with the announcement of its hostile offer for NovaGold.
NovaGold President and Chief Executive Officer Rick Van Nieuwenhuyse said:
"NovaGold believes that Barrick has wrongfully used confidential information belonging to NovaGold in making its own bid for Pioneer. To protect the interests of our shareholders, NovaGold will take all necessary action to vigorously prosecute our claims against Barrick for its improper actions, and we will seek all appropriate relief from the court."