NovaGold Resources has struck a deal to take full ownership of the Donlin Gold project by buying investment firm Paulson's 40% stake, consolidating control over what is slated to become America's largest gold mine.
The all-share transaction will create a new U.S.-domiciled parent company, NovaGold Corporation, valued at roughly $4.2 billion and owned 65% by existing NovaGold shareholders and 35% by Paulson.
Shares of NovaGold rose 6.8% to 6.02 Canadian dollars ($4.27), but are still down about 35% since the start of the year.
Located in Alaska's Kuskokwim Gold Belt, Donlin boasts a measured and indicated resource of about 40 million ounces. NovaGold also says it is among the highest-grade assets anywhere with 2.22 grams per metric ton, more than double the global industry average of 1.05 grams. The current resource spans just three kilometers of an estimated eight-kilometer mineralized belt.
For Thomas Kaplan, NovaGold's chairman and the exploration company's largest investor, the plan to develop the Donlin deposit dates back years, but it was only last year when NovaGold and Paulson teamed up to buy out Barrick Mining's 50% interest in the deposit for $1 billion. Paulson contributed $800 million for its 40% stake and NovaGold expanded its holdings to 60%.
"The hopes that I had for this holy grail are unfolding absolutely on plan," Kaplan said in February, when the company was still seeking financing for the deal. "Starting with the macros, gold is behaving like it should in a bull market." The project also faces no headwinds, he had said, especially after buying out Barrick.
NovaGold and Paulson have hired engineering firm Fluor to conduct a feasibility study on the deposit, a process which it has already begun and is expected to conclude in 2027.
NovaGold said Wednesday that taking sole ownership will create a leading U.S. gold developer, with a projected annual gold production of 1.3 million troy ounces in its first decade and then 1.1 million troy ounces over the 27-year mine life.
With full ownership in its fold, NovaGold said the Donlin Gold project is expected to be the largest gold-development project in the country, and will help streamline decision-making, improve access to financing, and accelerate development of the project, the company said.
The acquisition is immediately accretive to NovaGold shareholders on a net asset value, gold reserve, and resource-per-share basis.
The new entity will be co-chaired by Kaplan and Paulson founder John Paulson. The company noted that including Paulson's existing equity ownership in NovaGold, it would own about 40% of the economic interest in the new company, but would only have about a 19.99% voting interest.
The transaction is expected to close in the fourth quarter.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
July 22, 2026 12:48 ET (16:48 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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