RE: NG''''s 19% of AXRFrom here:
https://www.novagold.com/section.asp?pageid=3442
Related Party Transactions
In 2005, the Company sold 650399 BC Ltd. (BC), which held the Company's Yukon and British Columbia assets other than the Galore Creek and adjacent properties. The purchaser was Alexco Resource Corp. (Alexco), a newly formed company whose president is a director of NovaGold. The proceeds from the sale of BC Ltd. were shares in Alexco recorded at a fair value of $2.75 million, plus a cash payment of $600,000 equivalent to the cash existing in BC Ltd. at the time of the sale. The sale proceeds were equivalent to the consolidated book value of the assets in BC Ltd and thus there was no gain or loss on the sale. Although no agreement has been concluded, the Company intends to option back certain exploration rights to the Brewery Creek property from Alexco.
In January 2006 Alexco completed an initial public offering (IPO) and was listed on the Toronto Stock Exchange (TSX). The TSX listing accelerated the maturity of certain warrants previously issued. NovaGold did not participate in the IPO nor did it own any warrants. As a consequence of these issuances NovaGold's interest in Alexco was reduced from approximately 29% to 19.3% and the Company recognized a gain of $0.5 million on the dilution during the first quarter. The Company, in order to maintain its percentage interest in Alexco, committed to purchase up to 1.2 million common shares in Alexco at $2.50 per share contemporaneously with a public offering by Alexco at the same per share amount.