NovaGold acquires Donlin Gold in $4.2 billion all-share deal

NovaGold Resources Inc. has entered into a definitive agreement to acquire Paulson Advisers LLC’s entire 40 per cent stake in the Donlin Gold project in Alaska for $4.2 billion. The transaction, settled via an all-share deal, will result in NovaGold holding 100 per cent ownership of the asset, which is projected to become the largest gold development project in the United States.

Following the announcement, NovaGold’s shares rose 10.3 per cent to close at $6.21, extending a three-day winning streak. The move marks a significant consolidation of the project, which currently holds approximately 40 million ounces of measured and indicated mineral resources. These reserves represent more than twice the industry’s average grade, underpinning projections for annual production of 1.3 million ounces in the first decade and 1.1 million ounces over the project’s 27-year mine life.

As part of the restructuring, a new entity named NovaGold Corporation will be formed. The new company will list on the New York Stock Exchange, an upgrade from its current listing on NYSE American. Existing NovaGold shareholders will receive shares in the new NovaGold Corporation on a one-to-one basis, while Paulson Advisers will retain a 40 per cent stake in the restructured entity.

Governance arrangements for the new board include an expansion from 10 to 11 directors. The board will be co-chaired by Thomas Kaplan and John Paulson. Paulson Advisers will retain the right to nominate two directors, provided its equity ownership remains above 15 per cent of the issued and outstanding shares.

Billionaire John Paulson, who owns Paulson Advisers, stated that consolidating his firm’s interest into NovaGold enhances the project’s organisational structure. He described Donlin Gold as a world-class investment, noting that the transaction will facilitate, streamline, and expedite development.

Institutional interest in the company has strengthened recently. Data indicates that 25 hedge funds held positions in NovaGold in the first quarter, valued at $486.7 million. This represents a 4.6 per cent increase from the $465 million held in the fourth quarter of 2025, signalling growing confidence in the firm’s growth prospects.