Barrick Gold exits the Donlin project by selling its 50% stake to billionaire John Paulson and NovaGold Resources for $1.1 billion. The Canadian mining giant confirmed Tuesday’s move, marking a significant shift in Alaska’s gold mining landscape.
Paulson will gain 80% of Barrick’s share in this high-value transaction, while NovaGold will take the rest of the 20%. The Donlin Gold project in Alaska’s remote terrain holds around 39 million ounces of untapped gold reserves.
Both Barrick and NovaGold previously owned equal stakes, but this deal shifts complete control to the buyers—Barrick, which trades under ABX.TO said it will use the proceeds to reduce debt and return capital to shareholders.
Shares of Barrick Gold rose 1.7% in premarket trading, buoyed by rising bullion prices. NovaGold, which also saw its shares rise 6.8% premarket, will now control 60% of Donlin Gold. Paulson will keep the remaining 40% stake, further expanding his footprint in the mining sector.
NovaGold has the option to pay the pending debt owed to Barrick for $90 million before the deal closes. If it waits up to 18 months post-closure, the purchase price rises to $100 million. Pending regulatory approvals and financial clearances, the deal is expected to close by mid-to-late 2025.
Barrick said the sale aligns with its strategy to focus on core assets and maximize shareholder value. Executives emphasized the importance of strengthening the company’s balance sheet amid global economic shifts.
Meanwhile, NovaGold reaffirmed its commitment to long-term development at the Donlin site due to its vast gold reserves and strong future potential. The transaction signals a major leadership change for one of Alaska’s most promising gold projects.
If completed on schedule, the sale will mark the most significant ownership transaction in mine history as Barrick Gold exits the Donlin project as investors eye the long-term payoff from one of North America’s richest gold deposits.
