NOVAGOLD to acquire Donlin Gold stake from Paulson

NOVAGOLD Resources Inc. [NG-TSX, NYSE American] has struck a definitive deal to acquire a 100% interest in the Donlin Gold Mine in southwest Alaska. The deal aims to simplify ownership of one of the world’s largest undeveloped gold projects.

NOVAGOLD said its ownership interest will increase from 60% to 100% as a result of its acquisition of Paulson Advisers LLC’s 40% ownership in the Donlin Gold LLC joint venture in an all-share transaction.

Back in 2025, Novagold and Paulson Advisors struck a deal with Barrick Mining Corp. [ABX-TSX, B-NYSE] to acquire Barrick’s 50% interest in Donlin Gold LLC for $1.0 billion in cash – creating a new partnership between Novagold and Paulson to develop the Donlin Gold project.

Paulson is a private global investment advisory firm based in Palm Beach Florida.

Under the agreement, Novagold acquired a 10% interest in Donlin Gold LLC for $200 million, increasing its ownership interest in Donlin Gold from 50% to 60%, and Paulson acquired a 40% interest in Donlin Gold LLC for $800 million while agreeing to share responsibility as a full and equal partner in project management of Donlin Gold.

Under the latest agreement, a new company Novagold Corp., would be a Delaware corporation intended to be listed on the NYSE, of which current NOVAGOLD shareholders (inclusive of Paulson’s equity interest) would own approximately 65% and Paulson would indirectly receive 35% on a fully diluted basis in exchange for its interest in Donlin Gold.

Inclusive of its existing equity ownership in NOVAGOLD, Paulson would own approximately 40% of the economic interest while its voting interest in New NG would be capped at 19.9%. Subject to the approval of NOVAGOLD shareholders, regulators and the court, the deal is expected to close in the fourth quarter of 2026.

Substantial benefits to NOVAGOLD stakeholders are said to be as follows: The deal is expected to create a leading U.S. gold developer, with an approximately US$4.2 billion equity value and 100% ownership of Donlin Gold, whose projected annual 1.3 million-ounce gold production in the first decade and 1.1 million-ounce gold production over the 27-year mine life is expected to render it as the largest gold development project in the U.S.

The deal generates immediate accretion to NOVAGOLD shareholders on multiple key metrics including net asset value per share, gold reserves and resources per share, through the addition of over 16 million ounces of measured and indicated resources, inclusive of 13 million ounces contained in proven and probable reserves in a stable jurisdiction that is supportive of responsible development.

Other expected benefits include attributable production metrics, which have increased by over 520,000 ounces of annual gold production for the first 10 years.

The deal is designed to streamline corporate decision making and establish a single point of contact for engagement with key stakeholders, including long-standing Donlin Gold landowners, Calista Corp. and The Kuskokwim Corp.

NOVAGOLD shares advanced on the news, rising 7.8% or 62 cents to $8.56. The shares trade in a 52-week range of $19.69 and $7.03.