Novagold Resources and Paulson Advisers have finalised the $1bn acquisition of Barrick Mining’s 50% stake in the Donlin Gold project, located in Southwest Alaska.
The transaction, initially announced in April 2025, culminated in the formation of a new ownership structure for Donlin Gold to advance the project.
With the closing of the acquisition, Novagold increased its holding in Donlin Gold from 50% to 60% by purchasing an additional 10% stake for $200m. Concurrently, Paulson secured a 40% interest through an $800m investment.
Both entities have entered a new limited liability company agreement that ensures equal governance rights over the project.
Novagold president and CEO Greg Lang said: “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.”
The Donlin Gold project, nestled in the Kuskokwim region, is estimated to contain 39 million ounces of gold within its Measured and Indicated Mineral Resources.
Novagold said that it has chosen not to prepay the $90m debt owed to Barrick related to the Donlin Gold project at the time of closing. However, it retains the option to settle this debt for $100m within 18 months post-closing, before the option expires.
If Novagold does not exercise this option, the debt, valued at $158.9m as of 3 June 2025, will remain in place, adhering largely to its current terms of US prime plus 2% compounded semi-annually.
As of early March 2025, with funds from both a public offering and private placement that closed in May 2025, Novagold had access to $327m to facilitate acquiring the additional stake and support ongoing project activities.
Together with Paulson, Novagold plans to conduct a strategic review of Donlin Gold’s 2025 budget set at $43m on a full-scale basis.
Key initiatives include updating the feasibility study with a dedicated team and executing a drilling programme focused on converting and expanding reserves and resources. The duo also plans to advance technical work and engineering designs, supporting state permitting efforts, and engaging with stakeholders in Alaska.
Novagold specialises in developing precious metals projects and aims to progress Donlin Gold located in one of the world’s safest mining jurisdictions. Meanwhile, Paulson operates as a private global investment management advisory firm based in Florida.
