Novagold Surges 12% on Full Donlin Gold Buyout

Novagold Resources shares jumped 12.28% to $8.32 on Monday after the company struck a deal to acquire the remaining 40% stake in the Donlin Gold project from Paulson Advisers. The transaction, expected to close in the fourth quarter, gives Novagold 100% ownership of one of the largest undeveloped gold deposits in the world.

Under the all-share arrangement, Novagold will create a new Delaware corporation, NovaGold Corp., which will list on the NYSE. Current Novagold shareholders, including Paulson’s existing equity, will own about 65% of the combined company. Paulson will receive roughly 35% indirectly, but its voting interest will be capped at 19.99%. The deal requires shareholder approval, court approval, and regulatory clearances.

Donlin Gold sits in Alaska, a jurisdiction the company calls one of the safest mining regions globally. The project holds roughly 40 million ounces of gold in measured and indicated resources, with an average grade of 2.22 grams per tonne. The company expects the open-pit mine to produce more than 1 million ounces annually over a 27-year life, with first-decade output averaging 1.3 million ounces. The project’s landowners are Calista Corp. and The Kuskokwim Corp.

The company cited several benefits from the buyout. The transaction adds over 16 million ounces of measured and indicated resources, including 13 million ounces in proven and probable reserves. Pro forma, Novagold’s attributable production rises by more than 520,000 ounces a year in the first decade. The simplified ownership structure, the company said, will streamline decision-making and create a single point of contact for regulators, landowners, and capital providers. The new U.S. corporate domicile should also expand access to official-sector and sovereign wealth fund financing.

Gold itself rallied 2.83% to $4,488.98 on the same session, adding to the tailwind for gold-focused developers. Novagold’s NG stock page shows the stock is now up 12.28% on the day, with volume at 283,854 shares. The company’s gold profile page provides further context on the metal’s recent strength.

The acquisition removes the joint-venture structure that had complicated decision-making and financing. Paulson, a hedge fund known for large gold bets, had held the minority stake since 2018. The cap on Paulson’s voting interest at 19.99% preserves Novagold’s independence, the company said. The transaction also creates a single entity for Alaska Native landowners Calista and TKC to engage with, which could speed permitting and infrastructure agreements.

One risk is the project’s capital intensity. Donlin Gold requires significant upfront investment before first production, and the company has not yet secured full project financing. The new ownership structure may help attract institutional and sovereign wealth funds, but the timeline remains uncertain. The company expects to close the deal in the fourth quarter, but shareholder and regulatory approvals could delay the process.

The broader gold market provides a favorable backdrop. Gold prices have risen more than 30% over the past year, driven by geopolitical uncertainty and central bank buying. Projects with long mine lives and high-grade reserves like Donlin Gold command premium valuations in this environment.

Novagold’s Alpha Score is unavailable, and the stock is currently labeled Unscored on the platform. The stock trades at $8.32, up 12.28% on the session, with volume of 283,854 shares.