AcquisitionsJul 22, 2026, 07:06 AM
NOVAGOLD to Acquire 100% of Donlin Gold from Paulson
AI Summary
NOVAGOLD RESOURCES INC. announced definitive agreements to acquire Paulson Advisers LLC's 40% interest in Donlin Gold, bringing NOVAGOLD's ownership to 100%. This all-share transaction will create a new Delaware corporation, NovaGold Corporation, with current NOVAGOLD shareholders owning approximately 65% and Paulson owning about 35% on a fully diluted basis. The deal is expected to be accretive to NOVAGOLD shareholders, streamline project development, and establish a leading U.S. gold developer with an estimated US$4.2 billion equity value. The transaction is anticipated to close in the fourth quarter of 2026, subject to shareholder, court, and regulatory approvals.
Key Highlights
- NOVAGOLD to acquire Paulson's 40% ownership interest in Donlin Gold, increasing its stake to 100%.
- The transaction is an all-share deal, forming a new Delaware corporation, NovaGold Corporation ("New NovaGold").
- Current NOVAGOLD shareholders will own approximately 65% of New NovaGold, and Paulson will own approximately 35% on a fully diluted basis.
- Paulson's voting interest in New NovaGold will be capped at 19.99%, with an economic interest of approximately 40%.
- The deal creates a leading U.S. gold developer with an estimated US$4.2 billion equity value.
- Donlin Gold is projected to produce 1.3 million ounces of gold annually in its first decade and 1.1 million ounces over a 27-year mine life.
- The transaction is expected to be accretive to NOVAGOLD shareholders on net asset value, gold reserves/resources, and production metrics.
- Dr. Thomas S. Kaplan and John Paulson will co-chair the new company's Board of Directors.
Price Impact
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