In the most recent trading session, shares of NovaGold Resources Inc. (NYSE: NG) saw a huge increase, finishing 24.40% higher at $4.69. This increase came after a historic acquisition agreement involving the Donlin Gold property in Alaska was successfully closed.
Major Ownership Shift
Together with investment company Paulson & Co. Inc., NG completed the purchase of Barrick Gold Corporation’s 50% stake in Donlin Gold LLC, changing the strategic direction of one of the best gold development assets in the world.
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As per the approved agreement, NovaGold paid $200 million to purchase an extra 10% of Donlin Gold LLC, increasing its total shareholding to 60%. Paulson paid $800 million to acquire the remaining 40% of the business. Donlin Gold is presently governed by a recently passed limited liability business agreement that gives both partners equal control powers.
Pivotal Transaction and Forward Strategy
Following an initial announcement on April 22, 2025, NovaGold, Paulson, and Barrick worked closely together to complete the transaction. NG sees this action as a critical step in advancing one of the world’s most promising and legally safe gold projects.
In the upcoming months, NovaGold anticipates providing updates on significant project milestones as it embarks on a fresh Feasibility Study workstream. The business is still in a strong financial position as of March 1, 2025, having raised $327 million from a May 9 public offering and private placement.
Debt Strategy and Financial Flexibility
NovaGold has the opportunity to settle the $90 million debt to Barrick for $100 million within 18 months, even if it chose not to do so at closure. The debt, which was valued at $158.9 million on June 3, 2025, will continue to accrue interest at U.S. prime plus 2%, compounded semi-annually, if it is not exercised.
Progress on the Project and Involvement of Stakeholders
NovaGold (NG) will strategically assess the $43 million Donlin Gold budget for 2025 in collaboration with Paulson. Key initiatives include updating the Feasibility Study, executing a resource-expanding drill program, and enhancing engineering designs. Both firms are also committed to regulatory compliance, maintaining federal and state permits, and fostering stakeholder relations across Alaska.
