- NOVAGOLD (NG, Financial) plans to increase its stake in the Donlin Gold project to 60% through a $200 million investment.
- Paulson Advisers will acquire a 40% interest in the project for $800 million.
- The transaction is expected to conclude between Q2 and Q3 of 2025.
NOVAGOLD Resources Inc. (NG) and Paulson Advisers LLC have announced a $1 billion agreement to acquire Barrick's 50% interest in the Donlin Gold project, located in Alaska. As a result of this transaction, NOVAGOLD will increase its ownership from 50% to 60% with a $200 million investment, while Paulson will gain a 40% stake for $800 million.
The transaction, subject to regulatory approvals and expected to close in the second or third quarter of 2025, includes a robust financial package. It comprises $170 million in funding from Paulson, The Electrum Group, and Kopernik Global Investors through the issuance of common shares at $3.00 per share, along with warrants. The additional $30 million will be sourced from NOVAGOLD's treasury.
The Donlin Gold project is recognized for its extensive resources, holding approximately 39 million ounces of gold in Measured and Indicated Mineral Resources, with a gold grade of 2.24 grams per tonne, which is significantly higher than the industry average of 1.03 g/t. Post-closing activities will focus on updating the Feasibility Study, shifting the 2025 drill program's goal towards reserves and resources conversion, and advancing technical development.
This strategic acquisition positions NOVAGOLD to further develop one of North America's largest undeveloped gold projects, with a projected 27-year mine life and an estimated annual production of 1.1 million ounces. The partnership with Paulson is expected to accelerate the project’s development and optimize its exploration potential, which currently involves only 5% of the total land package.
