NOVAGOLD to Buy Paulson Donlin Stake in $4.2 Billion All-Stock Deal
The consolidation would give the gold developer a streamlined structure for advancing and financing Donlin Gold.
NOVAGOLD Resources Inc. (NG) agreed to acquire Paulson’s 40% ownership interest in Donlin Gold in an all-stock transaction carrying an approximately US$4.2 billion equity value, consolidating control as the company sought a simpler route to developing and financing the project.
The transaction called for holders to receive 1.0 share of New NG voting common stock for each NOVAGOLD common share. The companies expected the deal to close in the fourth quarter of 2026, setting up a new ownership structure through which NOVAGOLD planned to advance Donlin Gold.
The consolidation would streamline project development and financing while lowering the costs associated with the existing structure. The arrangement centered the company’s strategy more directly on Donlin Gold and reduced the number of owners involved in decisions about the project’s progression.
“Accretive to NOVAGOLD shareholders on key metrics, the more streamlined structure that will emerge under New NG will progress Donlin Gold that much more efficiently — and at reduced operating costs,” NOVAGOLD President and Chief Executive Greg Lang said.
The agreement followed NOVAGOLD and Paulson’s joint acquisition of Barrick Mining Corp.’s 50% interest in Donlin Gold, another step in the consolidation of the project’s ownership. Similar transactions elsewhere in the gold sector have concentrated projects under fewer owners: Fury Gold Mines bought Newmont’s 49.978% interest in the Éléonore South project for $3 million in 2024, giving Fury full ownership, and later acquired Quebec Precious Metals in a primarily share-funded transaction. Contango also pursued consolidation through its merger with Dolly Varden and a $16.1 million agreement to acquire full ownership of Alaska’s Lucky Shot project and extinguish an associated royalty.
The expected fourth-quarter closing would place the Donlin Gold stake under New NG’s streamlined structure and move NOVAGOLD from a partnership-based development model toward consolidated ownership. The remaining path to completion will determine when the company can begin applying that structure to the project’s financing, development planning and operating-cost base.