NOVAGOLD to Create $4.2B Gold Company with Donlin Acquisition
Mining News | 2026-07-23 05:56:45
The acquisition significantly strengthens NOVAGOLD's resource base by adding more than 16 million ounces of measured and indicated gold resources, including around 13 million ounces of proven and probable reserves.
By Paul Ploumis
SEATTLE (Scrap Monster): NOVAGOLD Resources has reached an agreement to acquire the remaining ownership interest in the Donlin Gold project from Paulson Advisors. The deal, expected to close during the fourth quarter, will create a combined U.S.-based gold company valued at approximately $4.2 billion.
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Following the transaction, a newly formed Delaware-incorporated company, NovaGold Corporation, will hold the combined interests in the Donlin Gold project. Existing NOVAGOLD shareholders will own nearly 65% of the new company, while Paulson Advisors will receive about 35% of the shares in exchange for its Donlin stake. Including its existing NOVAGOLD holdings, Paulson's ownership will increase to around 40%.
The acquisition significantly strengthens NOVAGOLD's resource base by adding more than 16 million ounces of measured and indicated gold resources, including around 13 million ounces of proven and probable reserves. It is also expected to increase the company's attributable annual gold production by more than 520,000 ounces during the mine's initial ten years of operation.
Located in southwest Alaska, Donlin Gold contains approximately 40 million ounces of measured and indicated gold resources at an average grade of 2.22 grams per tonne, including reserves.
POLL
What is the biggest strategic benefit of NOVAGOLD's acquisition of the remaining Donlin Gold stake?
Frequently Asked Questions
- What is the value of the combined company after the transaction?
The combined U.S.-based gold company is expected to be valued at approximately $4.2 billion.
- How will ownership be split after the deal closes?
Existing NOVAGOLD shareholders will own nearly 65%, while Paulson Advisors will own about 35%, increasing to around 40% when its existing NOVAGOLD shares are included.
- How many gold resources will the acquisition add to NOVAGOLD?
The deal adds more than 16 million ounces of measured and indicated gold resources, including around 13 million ounces of proven and probable reserves.
