Novagold Increases Ownership of Donlin Gold to 100% via All-Share Transaction

Novagold Resources Inc. has announced a definitive agreement to acquire the remaining 40% ownership interest in the Donlin Gold project from Paulson Advisers LLC. The transaction, executed on July 21, 2026, is structured as an all-share deal expected to close by the end of 2026, subject to regulatory and shareholder approvals.

Under the terms of the agreement, Novagold will issue shares to Paulson to increase its ownership stake in Donlin Gold LLC from 60% to 100%. The company stated that this consolidation of ownership will streamline corporate decision-making and enhance operational efficiency. Following the transaction, a new U.S.-domiciled parent company, referred to as New Novagold, will be listed on the New York Stock Exchange and serve as the ultimate parent of Novagold and its subsidiaries.

Novagold reported a cash and term deposit balance of approximately $343.4 million as of August 31, 2026. The company recorded net third-quarter operational cash expenditures of $28.1 million, with $24.8 million allocated to Novagold’s share of the Donlin Gold project and $3.3 million for general and administrative costs. For the fiscal quarter ended August 31, 2026, Novagold reported earnings of ($36.0) million and earnings per share of ($0.08).

The Donlin Gold project is projected to be the largest single gold mine in the United States. According to the company’s technical reports, the project possesses approximately 40 million ounces of Measured and Indicated Mineral Resources, including 13 million ounces of Proven and Probable Mineral Reserves. The project is expected to have an average annual production of 1.3 million ounces during the first 10 years of operation and 1.1 million ounces annually over a 27-year mine life.

Novagold has appointed Endeavour Financial and Macquarie Capital as financial advisors to support the development of the project and the arrangement of project and infrastructure financing. The company continues to advance the Bankable Feasibility Study (BFS), which is currently on schedule for completion in 2027. A Special Meeting of Shareholders is scheduled for November 3, 2026, to vote on the transaction.