NovaGold said July 21 it entered definitive agreements to acquire Paulson’s 40% interest in Donlin Gold in an all-share transaction, lifting NovaGold’s ownership in the project from 60% to 100%.
Under the deal, current NovaGold shareholders would own about 65% of the new company, NovaGold Corporation, while Paulson would indirectly receive about 35% on a fully diluted basis. Including its existing NovaGold stake, Paulson would hold about 40% of the economic interest in the new company, with voting power capped at 19.99%.
The transaction values the combined company at about $4.2 billion in equity value.
NovaGold said the consolidation would give it full control of Donlin Gold, a project it says has projected annual production of 1.3 million ounces in its first 10 years and 1.1 million ounces over a 27-year mine life. It also said the deal would add more than 16 million ounces of measured and indicated resources, including 13 million ounces in proven and probable reserves.
The company said projected attributable production would rise by more than 520,000 ounces a year in the first 10 years after the transaction.
The new structure is expected to simplify decision-making and reduce operating and capital inefficiencies at Donlin Gold. NovaGold also said the transaction would create a single point of contact for landowners and other stakeholders, and improve access to private and official-sector capital for the project’s next phase.
The board of the new company will be expanded from 10 to 11 directors and co-chaired by Thomas Kaplan and John Paulson. Paulson will have the right to nominate two directors while its ownership remains above 15%, and one director while its ownership is between 10% and 15%.
NovaGold said directors and certain senior officers, along with Electrum Strategic Resources and Paulson, representing about 28% of the company’s outstanding common shares, have agreed to vote in favor of the deal.
The transaction is expected to close in the fourth quarter of 2026. As a result of these announcements, the company's shares have moved 6.31% on the market, and are now trading at a price of $5.985. If you want to know more, read the company's complete 8-K report here.
