NOVAGOLD Resources (TSX:NG) has consolidated ownership of the Donlin Gold Project in Alaska through a deal with John Paulson’s hedge fund to form a new miner with an implied value of US$4.2 billion ($6 billion).
NOVAGOLD previously held 60% of the project, host to one of the world’s largest undeveloped gold deposits with 40 million ounces in resources.
To acquire the 100% interest, NOVAGOLD will combine with Paulson Advisor’s 40% stake to create a new Delaware-incorporated company called NovaGold Corporation that will be listed on the New York Stock Exchange.
NOVAGOLD will transfer its equity to the new company on a one-for-one basis. Upon completion, its shareholders will hold 65% of the new NovaGold, with Paulson receiving the other 35%.
Inclusive of its ownership in NOVAGOLD, Paulson’s economic interest in the new entity will remain at 40%.
‘Largest’ US gold project
The arrangement, expected to close in Q4 2026, comes a year after the joint acquisition by NOVAGOLD and Paulson of Barrick Mining’s (TSX:ABX) 50% interest in Donlin Gold for US$1 billion.
“Consolidating our interest in Donlin into NOVAGOLD enhances Donlin’s organizational structure and will facilitate, streamline and expedite the development of the Donlin mine,” Paulson says.
Greg Lang, NOVAGOLD’s President and CEO, adds that the combination “epitomizes the ultimate ‘smart’ consolidation transaction in the gold industry that aligns the interest of everyone involved.”
The deal reflects the gold mining industry’s broader push to consolidate tier-one assets, especially those in safer jurisdictions like the US and Canada.
Donlin, located in the Kuskokwim Gold Belt of southwest Alaska, is hailed by NOVAGOLD as the largest gold mine development in the US. It will be built as an open-pit mine with average annual production exceeding 1 million ounces over an expected life of 27 years.
The proposed mine has received all federal permits, and is in the process of completing state-level permitting.
NOVAGOLD is a well-financed gold development company focused on advancing the Donlin Gold project in Alaska.
Write to Jackson Chen at Mining.com.au
Image: NOVAGOLD Resources
