NOVAGOLD Completes $1 Billion Acquisition of Barrick's Stake in Donlin Gold
Deal News | Jun 04, 2025 | Globenewswire
NOVAGOLD RESOURCES INC. and Paulson Advisers LLC have completed the acquisition of Barrick Mining Corporation's 50% interest in the Donlin Gold project in Alaska. This $1 billion transaction results in NOVAGOLD holding a 60% stake and Paulson owning a 40% stake in Donlin Gold LLC. This change in ownership is expected to accelerate the development of Donlin Gold, a key gold development project located in a geopolitically stable region. The project is renowned for its large and high-grade deposits. The strategic realignment includes a revised company agreement giving both parties equal governance rights. NOVAGOLD's President and CEO, Greg Lang, emphasized the transformational nature of this deal, reflecting the collaborative spirit between the companies involved. Plans include enhancing the feasibility studies and pursuing expansive drilling programs to convert and expand available resources. This development aims to sustainably generate value for stakeholders and reinforce the project’s standing as one of the leading gold developments in the world.
Sectors
- Mining
- Private Equity
Geography
- United States – The Donlin Gold project is located in Alaska, USA, which is crucial to the discussions in the article.
- Canada – NOVAGOLD RESOURCES INC. is based in Vancouver, British Columbia, Canada.
Industry
- Mining – The article centers on the acquisition of gold mining assets, specifically the Donlin Gold project.
- Private Equity – Paulson Advisers, a private investment firm, is involved in the acquisition and ownership structure of the Donlin Gold project.
Financials
- 1 billion – The total acquisition cost for Barrick's 50% interest in Donlin Gold by NOVAGOLD and Paulson.
- 200 million – The amount NOVAGOLD paid to increase its stake in Donlin Gold LLC by 10%.
- 800 million – The amount Paulson paid for its 40% interest in Donlin Gold LLC.
- 90 million – Outstanding debt owed to Barrick in connection with the Donlin Gold project.
- 158.9 million – The current value of the outstanding debt after transaction completion.
- 43 million – The budget for Donlin Gold's 2025 operations on a 100% basis.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| NOVAGOLD RESOURCES INC. | Acquirer | Company | A precious metals company focused on developing projects like Donlin Gold. |
| Paulson Advisers LLC | Acquirer | Company | A private global investment management advisory firm involved in the acquisition. |
| Barrick Mining Corporation | Seller | Company | A mining company that sold its 50% interest in Donlin Gold. |
| Donlin Gold LLC | Target | Company | The entity owning the Donlin Gold project, where the ownership structure has changed. |
| Greg Lang | Spokesperson | Person | President and CEO of NOVAGOLD, providing statements on the transaction. |