Barrick Gold has finalized the sale of its 50% interest in Alaska’s Donlin Gold project for $1 billion in cash, transferring one of the world’s largest undeveloped gold deposits to its new joint owners, Novagold Resources and Paulson Advisers, the companies announced on Tuesday.
This deal reshapes the ownership structure of Donlin Gold, with Novagold increasing its stake from 50% to 60%, while Paulson now holds a 40% share. Both parties will have equal governance rights and have committed to a renewed effort to advance the project, including conducting an updated feasibility study and exploring opportunities for further expansion.
“We have successfully and strategically completed the Donlin Gold transaction today,” said Greg Lang, CEO of Novagold. “This is a transformational move, marking an exciting new chapter for Donlin Gold as we continue to develop one of the most promising and jurisdictionally attractive gold projects worldwide.”
Novagold views Donlin as a cornerstone asset and has raised sufficient capital to fund the acquisition of its additional 10% stake. Through an upsized public offering and a concurrent private placement, Novagold raised $200 million to support its share of project costs, which includes the updated feasibility study, resource conversion drilling, and engineering activities. As of March 1, the company reported having $327 million in cash set aside for these purposes.
Paulson Advisers, a major shareholder of Novagold, contributed $800 million to acquire its 40% stake in the project.
The new joint owners will now turn their attention to the 2025 Donlin Gold budget, which is currently set at $43 million on a 100% basis. Their priorities will include the full feasibility study update, a 2025 drilling campaign focused on reserve conversion and resource expansion, ongoing technical work, permitting activities, and continued engagement with local communities and government stakeholders in Alaska.
Donlin Gold, which holds an estimated 39 million ounces in measured and indicated gold resources, has remained undeveloped since its discovery due to high projected development costs and complex permitting requirements. Located on land owned by the Calista and The Kuskokwim, Alaska Native corporations, the project has local support for its potential development.
While Novagold opted not to prepay its existing $90 million debt to Barrick at the time of closing, it retains the option to settle the amount for $100 million within 18 months. If the option is not exercised, the debt — currently valued at $158.9 million — will remain in place under its original terms.
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