Barrick Announces Sale of Stake in Donlin Gold Project for Up To $1.1 Billion
Deal News | Apr 22, 2025 | Globenewswire
Barrick Gold Corporation has reached an agreement to sell its 50 percent interest in the Donlin Gold Project in Alaska to Paulson Advisers LLC and NOVAGOLD Resources Inc. The transaction is valued at $1 billion in cash. Barrick has also granted NOVAGOLD an option to purchase the outstanding debt related to the project for $90 million if purchased before closing or for $100 million if purchased within 18 months after closing. Paulson and NOVAGOLD will acquire 80 percent and 20 percent, respectively, of Barrick's interest in Donlin Gold LLC. The proceeds from the sale will be used to strengthen Barrick's balance sheet and invest in its portfolio of assets. The transaction is expected to be completed by mid-2025, subject to regulatory approvals and closing conditions. CIBC World Markets Inc. acted as the financial advisor, and Davies Ward Phillips & Vineberg LLP along with Holland & Hart LLP served as legal counsel to Barrick.
Sectors
- Mining
- Private Equity
Geography
- United States – The Donlin Gold Project is located in Alaska, hence the geography of the transaction is primarily within the United States.
- Canada – Barrick Gold Corporation is a company headquartered in Toronto, Canada.
Industry
- Mining – The article involves Barrick Gold Corporation, which is a mining company, and it discusses the sale of a stake in the Donlin Gold Project, which is directly related to the mining industry.
- Private Equity – Paulson Advisers LLC is involved in the transaction, representing the private equity sector which plays a pivotal role in the acquisition.
Financials
- $1,000,000,000 – The cash purchase price of Barrick's 50% stake in the Donlin Gold Project.
- $90,000,000 – The option price for NOVAGOLD to purchase the outstanding debt before closing.
- $100,000,000 – The option price for NOVAGOLD to purchase the outstanding debt within 18 months after closing.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Barrick Gold Corporation | Seller | Company | A leading gold mining company selling its stake in the Donlin Gold Project. |
| Paulson Advisers LLC | Buyer | Company | A New York-based investment management firm acquiring a significant part of Barrick's interest in the Donlin Gold Project. |
| NOVAGOLD Resources Inc. | Buyer | Company | A precious metals company focused on the development of gold and copper deposits, acquiring part of the Donlin Gold stake. |
| CIBC World Markets Inc. | Financial Advisor | Company | Provided financial advisory services to Barrick Gold Corporation for this transaction. |
| Davies Ward Phillips & Vineberg LLP | Legal Advisor | Company | Law firm acting as legal counsel for Barrick Gold Corporation. |
| Holland & Hart LLP | Legal Advisor | Company | Law firm providing legal services to Barrick in this transaction. |