Novagold unveils natural gas supply LOI for Alaska gold project
Novagold Resources Inc. [NG-TSX, NYSE American] said Donlin Gold LLC, its 60%-owned joint venture with Paulson Advisers LLC, has signed a non-binding letter of intent with Glenfarne Alaska LNG for potential natural gas supply and associated infrastructure to power the proposed Donlin Gold mine in southwest Alaska.
The arrangement contemplates up to 50 million cubic feet of gas per day from the Alaska LNG pipeline and coordinated development of a 500-kilometre buried pipeline and power plant, which the parties say, could lower fuel and logistics costs, enhance project economics, and provide broader energy cost benefits as Alaska LNG secures more customers.
Key permits for the pipeline route have already been granted and recently upheld by the Alaska Supreme Court, while a supplemental federal environmental review continues under the FAST-41 framework.
Back in 2025, Novagold and Paulson Advisors struck 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.
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, 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.
In parallel, Donlin Gold is advancing a bankable feasibility study, having received bids from major engineering firms and expecting to select a prime contractor in the first quarter of 2026, after which a detailed schedule and budget will be set, with final construction approvals remaining contingent on the completion of permitting and feasibility work.
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.
On Friday, Novagold shares rose 0.43% or $0.06 to $14.04. The shares trade in a 52-week range of $15.30 and $3.22.