- Barrick Gold (GOLD, Financial) agrees to sell its 50% Donlin Gold Project stake for up to $1.1 billion.
- Paulson Advisers and NOVAGOLD Resources to acquire Barrick's stake, contributing $1 billion in cash.
- Transaction completion expected in late Q2 or early Q3 2025, pending regulatory approvals.
Barrick Gold Corporation (GOLD) has announced a significant agreement to sell its 50% stake in the Donlin Gold Project located in Alaska for up to $1.1 billion. The sale involves a $1 billion cash payment from Paulson Advisers and NOVAGOLD Resources Inc. (NG), who will respectively acquire 80% and 20% of Barrick's interest in the project.
In addition to the cash payment, NOVAGOLD has an option to purchase the outstanding project-related debt for $90 million if acquired before the transaction closes, or for $100 million if purchased within 18 months post-closing. Several existing shareholders, including Paulson, will backstop NOVAGOLD's commitment to this purchase.
The transaction is anticipated to close in late Q2 or early Q3 2025, subject to the satisfaction of customary closing conditions and obtaining necessary regulatory approvals. Barrick plans to utilize the proceeds to bolster its balance sheet, invest in future operations, and enhance shareholder returns.
Mark Bristow, President and CEO of Barrick, noted that the agreement reflects Barrick's ongoing strategy to optimize its portfolio by focusing on Tier One gold and copper operations it operates. The sale aligns with Barrick's objective of concentrating on long-life, sustainable investments.
