Novagold raises US$195.2 million from upsized financing

Novagold Resources Inc. [NG-TSX, NYSE American] has raised US$195.2 million from an upsized public offering of 55.03 million common shares. The announcement comes after Novagold said it has received the full exercise and closing of the underwriters’ option to purchase an additional 7.18 million common shares at the public offering price of US$3.75 per shares.

Novagold said it intends to use the net proceeds from the exercise of the underwriters’ option of approximately US$25.6 million for general corporate purposes, including covering its share of expenses associated with updating the Donlin gold feasibility study.

In a press release on April 22, 2025, Novagold and Paulson Advisors LLC said they had entered into a definitive agreement 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 in Alaska.

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

Under the agreement, Novagold pledged to acquire a 10% interest in Donlin Gold LLC for $200 million, which will increase its ownership interest in Donlin Gold from 50% to 60%, and Paulson said it would acquire a 40% interest in Donlin Gold LLC for $800 million and share responsibility as a full and equal partner in project management of Donlin Gold.

Novagold shares eased 1.9% or 12 cents to $5.93 on Friday. The shares trade in a 52-week range of $6.99 and $3.22.

Donlin Gold hosts one of the world’s largest and highest grade undeveloped open pit gold endowments.

It hosts a measured and indicated resource of 541 million tonnes of grade of 2.24 g/t gold, containing 39 million ounces of the yellow metal. Those estimates are based on an updated feasibility study dated, November, 2011 that was amended in January 20, 2012. They include proven reserves of 8.0 million tonnes, grading 2.52 g/t.

The planned pits in which the existing resources are situated occupy only three kilometres of an eight- kilometre mineralized belt, which itself is located on less than 5% of Donlin Gold’s land position.

The site crew (150 employees, contractors and student interns), a majority of which are local hires from 24-Yukon-Kuskokwim (Y-K) communities in Alaska, are working on a two-week rotation schedule and continue to advance the project activities at a good pace, Novagold said.

Donlin Creek is expected to be an open pit operation that will rank among the world’s lowest cost gold producers with annual production of one million ounces over a projected mine life of 27 years. “No gold mine ever began production with 39 million ounces in measured and indicated resources, inclusive of proven and probable mineral reserves,” Novagold said.