NOVAGOLD, Paulson Hire Advisors for Donlin Gold Financing

NOVAGOLD Resources and Paulson Advisers have hired Endeavour Financial and Macquarie Capital as financial advisors for the Donlin gold project in Alaska, the companies said Tuesday. The advisors will help arrange project and infrastructure financing while the partners push toward a final investment decision.

The mandate covers evaluating funding from conventional project debt, infrastructure loans, and capital from export credit agencies and development banks. The advisors will coordinate with potential financiers and assist with due diligence, the release said.

“We are pleased to appoint Endeavour and Macquarie to support our project financing efforts,” Greg Lang, NOVAGOLD’s president and CEO, said in a statement. “Their combined expertise in structuring large-scale, agency-supported financings will be instrumental as we evaluate funding alternatives and advance a disciplined financing strategy for Donlin Gold.”

The appointment addresses one of the biggest risks facing the project: securing the billions of dollars needed to build an open-pit mine and processing facility in a remote part of Alaska. Donlin Gold is one of the world’s largest known gold deposits, with measured and indicated resources of about 40 million ounces. It is expected to produce more than one million ounces annually over a 27-year mine life.

The project is owned 60% by NOVAGOLD and 40% by Paulson through Donlin Gold Holdings. In July, the companies announced a definitive agreement for NOVAGOLD to acquire Paulson’s stake – a consolidation meant to simplify decision-making and widen access to private capital, government agencies, and sovereign wealth funds.

Work on a bankable feasibility study is ongoing. The financing effort will run alongside the BFS, with a final investment decision planned after its completion, the companies said.

The advisors bring specific experience in mining and infrastructure finance. Endeavour Financial is a specialist advisory firm focused on natural resources. Macquarie Capital is the advisory arm of Macquarie Group, with strength in critical minerals and large-scale project finance.

“Endeavour is delighted to be able to work with the NOVAGOLD and Paulson teams to evaluate and execute financing for this world-class asset in Alaska,” Daniel Hill, a director at Endeavour, said in the release.

Lance Rishor, head of Macquarie Capital Canada, said the firm looks forward to “helping evaluate a broad range of capital solutions” for the project’s next phase.

The companies said the advisors will help balance the funding mix to preserve long-term shareholder value while maintaining upside exposure. The financing process will consider options including export credit agency support, commercial bank debt, and infrastructure loans.

Donlin Gold sits on land owned by Alaska Native corporations Calista and the TKC. The partners continue working with the landowners and regulators on the permitting process. No construction decision has been made, and the project still requires permits and a positive economic study.

The BFS and financing work are expected to conclude on a timeline that positions Donlin Gold for a potential construction decision. The next major milestone is the completion of the feasibility study, now underway.