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Be the first with the news that moves the market- NovaGold Resources (TSX:NG) has continued its war of words with institutional investment firm J Capital Research, over the release of a recent report
- J Capital’s recent research piece was described by NovaGold as deliberately misleading and part of a short-and-selling scheme
- The research piece accused NovaGold of misleading investors about the cost of its Donlin gold project in Alaska
- Thomas ended his statement by saying he and the company would seek redress from J Capital for any damaged caused by the report
- NovaGold Resources (TSX:NG) is down 7.8 per cent and is trading at C$11.21 per share
NovaGold Resources (TSX:NG) has continued its war of words with institutional investment firm J Capital Research, over the release of a recent report.
The market research firm released the report on May 28, stating NovaGold and its management had misled investors on the cost of the Donlin gold project in Alaska.
Specifically, the report zeroed in on a proposed natural gas pipeline and cited an unnamed source who priced the project. The report claims the source didn’t know of any engineering company that has the experience to build such a complex pipeline.
Today, NovaGold’s Chairman Thomas Kaplan released a lengthy rebuke of the claims made by J Capital Research.
In a just under 10,000-word, 16-page counterargument, Thomas addressed the concerns raised about the project.
Thomas said J Capital was masquerading as a research firm and the report was part of a short-selling scheme designed to derive a quick profit on the backs of the company’s unsuspecting shareholders.
Thomas went on to describe the article as a hit piece and claimed it was clearly so fallacious that he initially assumed it had been written by a child.
“It made no sense to me that one would go out of their way to short our stock. Who in their right mind would short a great gold story in a growing bull market in gold?
“We will not stand idly by as a short and distort campaign is waged against NovaGold.
“The statements made by J Capital Research about NovaGold are false, misleading ultimately defamatory, and illegal in many respects,” he said.
Thomas ended his statement by saying the company will endeavour to seek redress for the damages done by people he claims exhibit neither intelligence nor character.
NovaGold Resources (NG) is down 7.81 per cent and is trading at C$11.21 per share at 12:00 pm EDT.
