A purchase and sale agreement has been made between NovaGold and the Bering Straits Native Corporation for the Rock Creek Mine in Northwestern Alaska.

The agreement is not final and BSNC says that the sale is subject to conditions, one of them being the completion of the phase one reclamation process, which is now underway.

In addition to the purchase of the Rock Creek Mine which includes the mill,mine and other claims in the area, BSNC hopes to purchase the Alaska Gold Company which also holds the Big Hurrah Mine, Satellite Mine and other patented mining claims.

The native corporation intends to bring in at least one partner, yet un-named, to assist in the mine as the corporation has no experience in the field. What the corporation has envisioned is a mining operation smaller than the previous operations. It is the hopes of the corporation that the mine and other properties will afford employment for shareholders of the corporation.

NovaGold is shedding the property so that it can concentrate on its holdings in southwest Alaska. In a written statement NovaGold the transfer of the Rock Creek Mine will allow NovaGOld to focus exclusively on the Donlin Gold Project near Crooked Creek. According to NovaGold, the transfer will save the company $14 million in closure costs.

Alaska’s senior Senator.Lisa Murkowski congratulated the Bering Straits Native Corporation for its purchase of the mine, saying, “The Bering Straits Native Corp. should be applauded for taking steps to develop the economy of the Nome region and create jobs for its shareholders,” Murkowski said. “Resource extraction is often a job done by Outside companies, who take the lion’s share of the profits out of Alaska. It’s refreshing to see a potential mine project be locally owned, where it can provide the greatest benefit to Alaskans.”

It is expected that the final agreement for the purchase will be completed by November 31 of this year.