Wedoany.com Report-Jun 5, NOVAGOLD Resources and Paulson Advisers have finalized a $1 billion acquisition of Barrick Mining’s 50% stake in the Donlin Gold project, located in the Kuskokwim Gold Belt, 10 miles north of Crooked Creek in southwest Alaska. The transaction, completed on June 3, 2025, advances the development of this significant gold project.

In partnership with Paulson, a strategic review of the 2025 budget for Donlin Gold, amounting to $43m, is under way.

Under the agreement, NOVAGOLD increased its ownership to 60% by purchasing an additional 10% stake for $200 million, while Paulson Advisers acquired a 40% interest for $800 million. The deal, initially announced on April 22, 2025, involved Barrick Gold’s subsidiary, Barrick Gold US, selling its 50% share. Both NOVAGOLD and Paulson now hold equal governance rights over the project.

To fund the acquisition and ongoing operations, NOVAGOLD raised $327 million through a public offering and private placement completed on May 9, 2025. The company opted not to prepay a $90 million debt owed to Barrick at closing but retains the option to settle it for $100 million within 18 months. If unpaid, the debt, valued at $158.9 million as of June 3, 2025, will continue under its existing terms.

Greg Lang, President and CEO of NOVAGOLD, stated: “Today we completed the successful and strategic Donlin Gold transaction through a strong collaborative effort between NOVAGOLD, Paulson, and Barrick since announcing the transaction on April 22, 2025. This constitutes a truly transformational transaction and an exciting new chapter for Donlin Gold as we advance one of the best and most jurisdictionally attractive gold development projects in the world. We look forward to providing updates on the key milestones in the coming months, starting with our revamped and determined efforts regarding the Feasibility Study workstream.”

NOVAGOLD and Paulson are reviewing the 2025 budget for Donlin Gold, set at $43 million, which includes updating the feasibility study and conducting the 2025 drill program. The partners are focused on exploring new resources, advancing technical work, and refining engineering designs. They are also committed to supporting state permitting, maintaining permits, engaging with government officials, and collaborating on stakeholder outreach and investment initiatives in Alaska.

The Donlin Gold project features a high-grade resource, with a measured and indicated grade of 2.24 grams per ton, distinguishing it among other open-pit mines and projects. This acquisition strengthens the project’s path toward development, leveraging its significant potential to contribute to the region’s economy.