Novagold to Take Full Ownership of Donlin Gold in Buyout
Novagold Resources (NYSE:NG) announced it has entered into definitive agreements to buy out Paulson Advisers’ 40 percent stake in the Donlin gold project in Alaska, unifying ownership of what is projected to become the largest single gold mine in the US.
Under the arrangement, Paulson will transfer its interests in Donlin Gold Holdings to the new entity in exchange for shares representing roughly 35 percent of the new company on a fully diluted basis.
Paulson will hold a 40 percent economic interest in NovaGold Corporation, though its voting power will be strictly capped at 19.99 percent. Current Novagold shareholders will retain a 65 percent stake.
The consolidation creates a single point of contact for stakeholders as Donlin Gold advances toward a Bankable Feasibility Study and full-scale project financing.
In June, Novagold reported holding US$370.2 million in cash and term deposits, accelerating engineering work under lead contractor Fluor Corporation to finalize designs for the site’s power plant and pipeline infrastructure.
“Consolidating our interest in Donlin into Novagold enhances Donlin’s organizational structure and will facilitate, streamline and expedite the development of the Donlin mine,” said John Paulson, who will serve as co-chair of the new company alongside current Novagold Chairman Dr. Thomas S. Kaplan.
The deal adds over 16 million ounces of measured and indicated resources to Novagold’s portfolio. Located in Alaska, Donlin Gold is projected to produce 1.3 million ounces of gold annually during its first decade of operation and average 1.1 million ounces over a 27-year mine life.
The resource base currently sits at approximately 40 million ounces of measured and indicated mineral resources, featuring an average grade of 2.22 grams per tons—more than double the global industry average.
The transaction remains subject to court clearance, regulatory approvals, and a two-thirds majority vote by Novagold shareholders. The acquisition is expected to close in the fourth quarter of 2026.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
