{"id":1195081,"date":"2020-07-10T07:58:00","date_gmt":"2020-07-10T12:58:00","guid":{"rendered":"https:\/\/www.mining.com\/?p=1029354"},"modified":"2020-07-10T07:58:00","modified_gmt":"2020-07-10T12:58:00","slug":"novagold-dismisses-chance-of-scam-based-class-action","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1195081","title":{"rendered":"Novagold dismisses chance of \u201cscam-based\u201d class-action"},"content":{"rendered":"

Canada\u2019s Novagold (TSX, NYSE: NG), which is suing short-selling firm J Capital Research<\/a> (JCAP) for defamation, said a US law firm potential attempt to launch a class suit against the company on alleged securities fraud would be based on \u201cmalicious and false information\u201d<\/a>.<\/p>\n

Lawyers at Hagens Berman said this week they were investigating whether Novagold had misled investors about the viability of its Donlin gold projec<\/a>t, in Alaska.<\/p>\n

Novagold said the  move by the San Francisco-based law firm’s appeared to be entirely based on JCAP\u2019s “tapestry of deceit” as well as \u201cfalse and misleading statements”<\/a> about the company and its 50-50 development partner in the project, Barrick Gold (TSX: ABX) (NYSE: GOLD).<\/p>\n

In a report issued on May 28, JCAP accuses the gold junior of \u201csystematically\u201d misleading investors about the proposed gold mine over the last 15 years.<\/p>\n

NovaGold and Barrick\u2019s Donlin project, with measured and indicated resources of about 39 million ounces of gold is considered one of the largest open-pit gold deposits in Alaska.<\/p>\n

JCAP, a company founded in China a decade ago that usually targets overvalued media and tech companies for short-selling, said the Donlin Gold project would \u201cnever be built\u201d and \u201cin short, is a stock promote, not a mining plan.\u201d<\/p>\n

Unimportant asset<\/strong><\/h2>\n

JCAP backed its claim by saying that Doling insignificance can be proven by Barrick\u2019s decision to not include the project in its new 10-year production plan<\/a>, which is aimed at becoming the most valued gold company.<\/p>\n

Novagold\u2019s chairperson, Thomas Kaplan, said Hagens Berman\u2019s solicitation of shareholders was based on a \u201cfundamentally flawed report\u201d, somehow expected in a \u201cdirty game\u201d.<\/p>\n

“Even with Novagold’s line-by-line factual rebuttal available to them, the law firm did nothing more than repeat a slapdash mixture of errors of fact, falsehoods, and discredited assertions,” Kaplan said.<\/p>\n

While Novagold would not be issuing responses to “every dart aimed at it”, he said the company highlighted Hagens Berman\u2019s press release, because it was \u201cemblematic of the amateurishness and abject ignorance of the public statements made recently about Novagold by JCAP and now repeated by others\u201d.<\/p>\n

Kaplan encouraged owners to assess whether they had suffered damage from the reports and to seek advice regarding potential redress available to them from the “real perpetrator of wrongs: JCAP”.<\/p>\n

Novagold and Barrick reopened the Donlin camp in June<\/a>, following a two-month hiatus brought by measures to help reduce the spread of covid-19.<\/p>\n

The companies anticipate that most of the planned program, aimed at confirming recent geologic modelling concepts and testing potential extensions of high-grade zones, will be completed by the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"

US law firm’s potential class suit against the company would be based on “malicious and false information”, says Novagold.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,949,369,2640],"tags":[43],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1195081"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1195081"}],"version-history":[{"count":7,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1195081\/revisions"}],"predecessor-version":[{"id":1195161,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1195081\/revisions\/1195161"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1195081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1195081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1195081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}