Novagold and Paulson Complete $1bn Acquisition of Donlin Gold Stake
Novagold Resources and Paulson Advisers have successfully closed the $1 billion acquisition of Barrick Mining’s 50% stake in the Donlin Gold project. Located in Southwest Alaska, Donlin Gold is one of the world’s most promising gold development projects. With this transaction, Novagold’s stake in the project has increased to 60%. Additionally, Paulson now holds a 40% interest.
This move marks a significant shift in the project’s ownership structure. It positions Novagold and Paulson for further development of Donlin Gold. The deal, originally announced in April 2025, aims to propel the project forward with key strategic investments. Updated plans for exploration and development are also part of the deal.
Key Strategic Moves in the Donlin Gold Project
The acquisition of Barrick’s stake represents a major step for both Novagold and Paulson. Novagold’s president and CEO, Greg Lang, highlighted the importance of the transaction. He described it as “transformational” for the company and the Donlin Gold project. With this purchase, Novagold is poised to advance the project significantly.
The Donlin Gold project, located in the Kuskokwim region of Alaska, is home to an estimated 39 million ounces of gold in its Measured and Indicated Mineral Resources. This vast gold deposit places the project among the most attractive in the world for gold mining investment. The focus of both companies is now on finalizing the feasibility study, enhancing technical work. They are also engaging with stakeholders, including local communities in Alaska.
Future Plans for Donlin Gold’s Development
Moving forward, Novagold and Paulson are committed to conducting a comprehensive review of Donlin Gold’s 2025 budget. The project is set to receive $43 million in funding. This will be allocated towards key initiatives such as updating the feasibility study. Executing a drilling program to expand and convert existing resources is also planned. Furthermore, Novagold will focus on technical work, state permitting. They will further advance engineering designs for the project.
Novagold also retains an option to pay off $90 million in debt to Barrick over the next 18 months. However, if they choose not to exercise this option, the debt will remain at its current value of $158.9 million. The interest rates are calculated at prime plus 2% annually.
SuperMetalPrice Commentary:
The completion of the acquisition strengthens Novagold’s position in one of the world’s most lucrative gold deposits. This deal is a key milestone in the ongoing race to develop gold projects. These projects are in politically stable and mining-friendly regions like Alaska. As the gold market remains volatile and demand for precious metals persists, Donlin Gold is well-positioned to become a significant contributor to global gold production. Both Novagold and Paulson will likely focus on reducing operational costs and increasing efficiency. They are also ensuring sustainable mining practices as they move forward with this promising venture.
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