Nova Gold Resources (NYSE American, TSX: NG) and Paulson Advisers announced they have entered into a definitive agreement with Barrick Gold to acquire Barrick’s 50% interest in Donlin Gold for $1.0 billion in cash — creating a new partnership between Nova Gold and Paulson to develop the Donlin gold project in Alaska.
Nova Gold will acquire a 10% interest in Donlin Gold for $200 million, which will increase its ownership interest in Donlin Gold from 50% to 60%. Paulson will acquire a 40% interest in Donlin Gold for $800 million and will share responsibility as a full and equal partner in project management of Donlin Gold. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close late in the second or early in the third quarter of 2025.
Following the closing of the transaction, under the direction of the new partners, Donlin Gold expects to: Immediately commence the various workstreams to update the feasibility study, including assembling a specially dedicated team to advance these efforts; Shift the 2025 drill program’s focus to the conversion and expansion of Donlin Gold’s reserves and resources, with both partners committed to exploring for new resources along strike and to depth in future campaign seasons.
The company also expects with the partnership to: Advance technical work and engineering designs; Continue to support state permitting efforts and maintain existing federal and state permits in good standing, including government affairs engagement with federal and state representatives; and Enhance social license, with ongoing community outreach and investment initiatives with partners and landowners, Calista and The Kuskokwim Corporation.
John Paulson, head of Paulson Advisers,said: “Donlin Gold is one of the most attractive development gold projects in the world. With 39 million ounces of gold at double the industry average grade, and an optimal location in the prime jurisdiction of Alaska — already the second largest gold-producing state in the United States — we believe that the project could create value for decades to come. Enjoying excellent social license and formidable exploration upside potential to significantly expand its resources and production profile, Donlin Gold constitutes a superb opportunity for us to gain leverage to gold in the United States at an attractive valuation. Together with Donlin Gold’s partners, Calista and TKC, we are dedicated to responsibly advance the Donlin Gold project.”
Dr. Thomas S. Kaplan, Nova Gold’s chairman, said: “The announcement of our new partner, Paulson, marks the watershed moment in our company’s ambition to unlock conscientiously the full value of Donlin Gold. For such a prescient and illustrious gold investor as John Paulson to share our belief that Donlin Gold constitutes one of the best and most jurisdictionally attractive gold development projects in the world — and indeed worthy of such an extraordinary investment — is truly catalytic for Nova Gold.”
More information is posted on www.NovaGold.com.
Comments