Novagold Resources to Acquire Remaining Stake in Donlin Gold via All-Share Deal
Novagold Resources has entered into a definitive agreement to acquire the remaining 40% stake in the Donlin Gold project through an all-share transaction, granting it full ownership. The deal will consolidate control under New NovaGold, a new U.S.-based parent company with an estimated pro forma market capitalization of $4 billion to $4.2 billion. Existing Novagold shareholders are expected to own 65% of the new entity, while former Donlin Gold Holdings shareholders will hold 35%. The transaction is anticipated to close in Q4 after shareholder and regulatory approvals. The acquisition aims to streamline decision-making and financing for the development phase of Donlin Gold. Novagold expects the deal to be immediately accretive on net asset value, gold reserves, and resources per share. John Paulson's economic stake will increase but his voting power is capped at 19.99%. The new board structure includes co-chairs Thomas Kaplan and Paulson, with plans for an expanded board of directors.
Tickers: $NG
Topics: gold mining ownership change