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NOVAGOLD and Paulson Advisers Announce $1 Billion Transaction to Acquire 50% of the Donlin Gold Project From Barrick
NGNOVAGOLD(NG) GlobeNewswire·2025-04-22 11:09

Core Viewpoint - NOVAGOLD Resources Inc. and Paulson Advisers LLC have entered into a definitive agreement to acquire Barrick Gold Corporation's 50% interest in Donlin Gold LLC for 1.0billion,establishinganewpartnershiptodeveloptheDonlinGoldprojectinAlaska[1][2].AcquisitionDetails−NOVAGOLDwillincreaseitsownershipinDonlinGoldLLCfrom501.0 billion, establishing a new partnership to develop the Donlin Gold project in Alaska [1][2]. Acquisition Details - NOVAGOLD will increase its ownership in Donlin Gold LLC from 50% to 60% by acquiring a 10% interest for 200 million, while Paulson will acquire a 40% interest for 800million[2][6].−ThetransactionissubjecttoregulatoryapprovalsandisexpectedtocloseinlateQ2orearlyQ3of2025[2].FinancialArrangements−TofinanceNOVAGOLD′sacquisition,fundingcommitmentsofupto800 million [2][6]. - The transaction is subject to regulatory approvals and is expected to close in late Q2 or early Q3 of 2025 [2]. Financial Arrangements - To finance NOVAGOLD's acquisition, funding commitments of up to 170 million were secured from Paulson, Electrum Group, and Kopernik Global Investors, with the remaining 30millioncomingfromNOVAGOLD′streasury[4].−NOVAGOLDhastheoptiontopurchaseoutstandingdebtowedtoBarrickrelatedtotheDonlinGoldprojectfor30 million coming from NOVAGOLD's treasury [4]. - NOVAGOLD has the option to purchase outstanding debt owed to Barrick related to the Donlin Gold project for 90 million before closing or 100millionwithin18monthsafterclosing[5].ProjectManagementandGovernance−Followingthetransaction,NOVAGOLDandPaulsonwillhaveequalgovernancerightsunderanamendedlimitedliabilitycompanyagreement[3].−ThenewpartnershipwillfocusonupdatingtheFeasibilityStudyandadvancingexplorationeffortstoconvertandexpandreservesandresources[6][7].ProjectPotential−DonlinGoldhostsapproximately39millionouncesofgold,withanestimatedgradeof2.24gramspertonne,significantlyhigherthantheindustryaverageof1.03gramspertonne[12][25].−Theprojectisprojectedtohavea27−yearminelifewithaverageannualproductionexpectedtoreachapproximately1.1millionounces[13][20].CommunityandEnvironmentalCommitment−BothNOVAGOLDandPaulsonemphasizetheircommitmenttoecologicalstewardshipandtheeconomichealthoftheYukon−Kuskokwimregion,ensuringresponsibledevelopmentthatrespectslocaltraditionsandtheenvironment[15][11].−ThepartnershipaimstomaintainstrongrelationshipswithCalistaCorporationandTheKuskokwimCorporation,theNativelandowners,toupholdthesociallicensefortheproject[14][15].2025Outlook−Keyobjectivesfor2025includeupdatingtheFeasibilityStudy,completingthedrillprogramforreservesconversion,andmaintainingnecessarypermits[16].−ThepreviouslydisclosedexpenditureforDonlinGoldin2025isapproximately100 million within 18 months after closing [5]. Project Management and Governance - Following the transaction, NOVAGOLD and Paulson will have equal governance rights under an amended limited liability company agreement [3]. - The new partnership will focus on updating the Feasibility Study and advancing exploration efforts to convert and expand reserves and resources [6][7]. Project Potential - Donlin Gold hosts approximately 39 million ounces of gold, with an estimated grade of 2.24 grams per tonne, significantly higher than the industry average of 1.03 grams per tonne [12][25]. - The project is projected to have a 27-year mine life with average annual production expected to reach approximately 1.1 million ounces [13][20]. Community and Environmental Commitment - Both NOVAGOLD and Paulson emphasize their commitment to ecological stewardship and the economic health of the Yukon-Kuskokwim region, ensuring responsible development that respects local traditions and the environment [15][11]. - The partnership aims to maintain strong relationships with Calista Corporation and The Kuskokwim Corporation, the Native landowners, to uphold the social license for the project [14][15]. 2025 Outlook - Key objectives for 2025 include updating the Feasibility Study, completing the drill program for reserves conversion, and maintaining necessary permits [16]. - The previously disclosed expenditure for Donlin Gold in 2025 is approximately 43 million, which will be reviewed by the partners [16].