Barrick to sell Donlin Gold stake to Paulson, Novagold for $1B

Canada’s Barrick Gold (NYSE:GOLD)(TSX:ABX) is exiting the Donlin Gold project in Alaska by selling its 50% stake for $1 billion to billionaire John Paulson and Novagold Resources (TSX: NG).Paulson Advisers LLC will acquire 80% of Barrick Gold’s interest Dolin Gold, with Novagold purchasing the remaining 20%. Both parties will contribute to the purchase price proportionally, according to separate statements from the mining companies.Novagold will also have the option to buy debt owed to Barrick for $90 million if completed before closing, or $100 million within 18 months after the deal closes.Paulson, who heads hedge fund Paulson & Co. and is already a major Novagold investor, will become “a full and equal partner” in the project. Novagold and Barrick formed the Donlin joint venture in 2007.Barrick said it would use proceeds from the sale to strengthen the balance sheet and boost shareholder returns.Shares of Barrick rose 2.1% in pre-market trading Tuesday in New York, reaching $20.88. Novagold surged 9% to $3.40. Both stocks were lifted by record gold prices, which briefly topped $3,500 per ounce amid market concerns over US President Donald Trump’s push to remove Federal Reserve Chair Jerome Powell.The transaction is expected to close in the second or early third quarter of 2025. At that point, Novagold will hold a 60% stake in Donlin Gold, with Paulson owning the remaining 40%.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com