Agreement Will Transfer Rock Creek Mine Assets to BSNC
Agreement Will Transfer Rock Creek Mine Assets to BSNC June 12, 2012 - (Nome, Alaska). Bering Straits Native Corporation (BSNC) and NovaGold Resources Inc. have signed a Purchase and Sale Agreement (PSA) that will transfer the assets of the Rock Creek Mine to BSNC. The transfer is contingent upon NovaGold?s successful completion of Phase I of the Reclamation Plan approved by the permitting agencies in the spring of 2012. Concurrently, BSNC is in negotiations with NovaGold to purchase the Alaska Gold Company, which owns the Rock Creek mine and other assets in the Nome area including land and gravel resources and the Big Hurrah mining claim. Rock Creek is an open-pit gold mine located six miles east of Nome. The mine is now in care and maintenance status. BSNC is continuing to evaluate whether the mine can successfully be placed back into operation on a smaller scale than previously operated. If the analysis indicates that mine cannot be profitably operated, BSNC will initiate Phase II of the reclamation plan and move towards full closure of the mine site. "BSNC is well positioned to utilize its existing infrastructure to explore future opportunities in the region,? said Gail Schubert, President of BSNC. ?We will evaluate all environmentally sound options to maximize the value of Rock Creek to secure economic benefits for BSNC and the region.? The PSA will transfer the mine and mill facility to BSNC as well as the patented mining claims owned by NovaGold within the project area. ?The transfer of these assets to BSNC is a natural step in our relationship with NovaGold. Bringing the patented claims into BSNC will enhance our land base in the region, and the material assets of the mine will provide a benefit to our current Nome area operations,? said Schubert. About Bering Straits Native Corporation Bering Straits Native Corporation (BSNC) was formed in 1972 as the regional Alaska Native Corporation for 6,333 original shareholders under authority of the Alaska Native Claims Settlement Act. The Bering Straits region encompasses the majority of Alaska's Seward Peninsula and the coastal lands of eastern Norton Sound. BSNC owns and manages nearly two million acres of subsurface estate of land selected by 17 village corporations in the region. This region is one of the most culturally diverse areas in the state with three Native languages spoken: Siberian Yup'ik, Central Yup'ik, and Inupiaq. BSNC is headquartered in Nome, Alaska. Regional operations include real estate management and development, tourism, construction, mining services and sales of rock and aggregate. BSNC also has offices in Anchorage, which oversee the company's government contract work under the SBA's 8(a), HubZone and small business programs. Anchorage operations also include construction and various support services for commercial clients and shareholder services.