OTTAWA (Reuters) - NovaGold Resources Inc. (NG.TO: Quote) said on Thursday that a district court in Alaska had dismissed its lawsuit against Barrick Gold (ABX.TO: Quote), saying it was too early to assess if Barrick can meet the requirements to boost its stake in the Donlin Creek gold-mining project.
NovaGold filed the suit in August 2006, alleging breach of contract and breach of fiduciary duty. It also sought a judgment clarifying the conditions for Barrick to earn an additional 40 percent stake in the project and Barrick's ability to satisfy those requirements.
NovaGold owns a 70 percent share of Donlin Creek, and Barrick the remaining 30 percent of the project, located 280 miles west of Anchorage, Alaska. Barrick inherited its stake when it took over gold miner Placer Dome in 2006.
In granting Barrick's motion to dismiss, Judge Timothy Burgess said a ruling must await the November 2007 deadline for Barrick to meet the requirements.
These include completion of a final, bankable feasibility study and a board decision on construction of a mine that will produce not less than 600,000 ounces of gold a year, NovaGold said.
Environmental approval and permitting for Donlin Creek will not start until after the November deadline, NovaGold added, and will likely not be completed for an additional two to three years.
AI
