en.Wedoany.com Reported - Novagold Resources (NYSE-A, TSX: NG) will acquire the remaining stake in Alaska's Donlin Gold mine from Paulson Advisors through an all-stock transaction, creating a gold mining company valued at approximately $4.2 billion and simplifying the ownership structure of one of the world's largest undeveloped projects.

The deal will combine Novagold's existing stake in Donlin Gold with Paulson Advisors' interests to form a Delaware-registered company, NovaGold Corp. Upon completion, existing Novagold shareholders will hold nearly 65% of the new entity, while Paulson will receive about 35% in exchange for its Donlin interests. Including its current Novagold shares, Paulson will hold approximately 40% of the combined company. The transaction is expected to close in the fourth quarter.

John Paulson said consolidating the Donlin Gold interests into Novagold will enhance the project's organizational structure and facilitate, simplify, and accelerate the development of the Donlin mine.

The deal reflects a broader trend of gold miners consolidating tier-one assets amid record gold prices that have strengthened balance sheets and improved access to financing. By ending the split ownership of Donlin Gold, Novagold creates a single U.S.-listed company, which it says will help improve engagement with government agencies and sovereign wealth funds to support the next phase of project development.

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As of Wednesday's intraday trading, Novagold Resources shares rose 9.2% in Toronto to $8.67 per share, valuing the company at $3.76 billion. Its 52-week trading range is $7.02 to $19.69.

Novagold President and CEO Greg Lang said the merger represents the ultimate smart consolidation deal in the gold industry, aligning the interests of all parties involved.

NovaGold Corp. will be co-chaired by Novagold Chairman Thomas Kaplan and John Paulson, with its board expanding from 10 to 11 members. The miner will also redomicile to the U.S., where the Donlin project is located.

In January, Novagold said Donlin Gold has approximately 560 million tonnes of measured and indicated resources at a grade of 2.22 grams of gold per tonne, containing about 40 million ounces of metal, making it one of the largest and highest-grade undeveloped gold deposits in the industry. Additionally, the project has 88.9 million tonnes of inferred resources at a grade of 2.03 grams of gold per tonne, containing 5.8 million ounces of metal.

The project is expected to produce approximately 1.1 million ounces of gold annually over a 27-year mine life. Due to higher initial grades, average annual production will increase to about 1.3 million ounces in the first decade.