Novagold Increases Ownership in Donlin Gold to 60%

By Philip Seaworth • Wednesday, June 04 15:31 • Permanent Link

Novagold Resources Inc. and Paulson Advisers LLC have successfully completed the acquisition of Barrick Mining Corporation's 50% interest in the Donlin Gold project. The acquisition has resulted in Novagold increasing its ownership interest in Donlin Gold from 50% to 60%, while Paulson has acquired a 40% ownership interest in the project.

The acquisition involved Novagold acquiring an additional 10% stake in Donlin Gold LLC for $200 million, bringing its total stake to 60%, and Paulson securing a 40% interest in Donlin Gold LLC for $800 million. As of March 1, 2025, Novagold had $327 million to fund the acquisition of the additional 10% stake in Donlin Gold LLC and the company's share of ongoing activities at Donlin.

Novagold also announced that it has opted not to prepay the outstanding debt owed to Barrick in connection with the Donlin Gold project for $90 million upon closing, but it retains the option to prepay the outstanding debt for $100 million within 18 months from closing. The outstanding debt is currently valued at $158.9 million as of June 3, 2025.

In coordination with Paulson, a strategic review of the Donlin Gold 2025 budget ($43 million on a 100% basis) will be completed while advancing various activities, including commencing the workstream to update the feasibility study, executing the 2025 drill program, advancing technical work and engineering designs, supporting state permitting efforts, and collaborating on ongoing stakeholder outreach and investment initiatives in Alaska.

The Donlin Gold project, located in Alaska, is regarded as one of the largest, highest-grade, and most prospective known open-pit gold deposits in the world.

These developments represent a significant milestone for Novagold, Paulson Advisers, and Barrick Mining, as they work together to advance one of the best and most jurisdictionally attractive gold development projects in the world. The market has reacted to these announcements by moving the company's shares 21.88% to a price of $4.595. If you want to know more, read the company's complete 8-K report here.

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