NovaGold Resources Inc. has agreed to acquire John Paulson's 40% stake in the Donlin Gold project in Alaska, making NovaGold the sole owner of the undeveloped bullion mine. This all-share transaction, expected to close in the fourth quarter, will result in a new Delaware-based parent company, NovaGold Corporation, with an estimated equity value of approximately $4.2 billion. The new entity is intended to be listed on the New York Stock Exchange.
Upon completion, existing NovaGold shareholders will own nearly 65% of the new company, while Paulson will receive about 35% in exchange for its Donlin Gold interest. Including Paulson's existing equity in NovaGold, his total economic interest in the new entity will be approximately 40%, although his voting interest will be capped at 19.99%. The board of the new company will expand from 10 to 11 directors and will be co-chaired by NovaGold's Thomas Kaplan and John Paulson, with Paulson entitled to two nominees as long as he holds above 15%.
The strategic rationale for this deal is to consolidate ownership, eliminating split control of Donlin Gold and creating a single, fully owned U.S.-listed entity. This move is expected to improve operational efficiency, facilitate capital raising for development, and enhance access to governmental agencies and sovereign wealth funds. The consolidated project will add over 16 million ounces of measured and indicated resources to NovaGold, including 13 million ounces in proven and probable reserves, and is projected to increase attributable gold production by over 520,000 ounces annually for the first 10 years.
