NovaGold Acquires Remaining Stake in Donlin Gold Project
NOVAGOLD Resources has signed agreements to acquire the remaining 40% stake in the Donlin Gold project from Paulson Advisers and its affiliates through an all-share transaction. This move will grant NOVAGOLD full ownership of the Alaskan gold project, which contains approximately 40 million ounces (moz) of measured and indicated resources. The acquisition is expected to result in a new US-based parent company, NovaGold Corporation, with an equity value estimated at $4.2 billion CAD ($5.91 billion USD). Current NOVAGOLD shareholders will hold around 65% of the new entity, while Paulson Advisers will receive approximately 35%. The deal is subject to regulatory approvals and court approval under British Columbia's Business Corporations Act. The Donlin Gold project has a projected mine life of 27 years with an average annual production of about 1.3moz in the first decade, decreasing slightly over time. NOVAGOLD CEO Greg Lang emphasized that this consolidation aligns all stakeholders' interests and represents a significant step forward for the company's strategic goals.
Tickers: $NG
Topics: Corporate Restructuring Gold Mining