Canadian miner Barrick Gold has signed a definitive agreement with the affiliates of Paulson Advisers and NOVAGOLD Resources to sell its 50% interest in the Donlin Gold Project in Alaska – held by Barrick’s subsidiary, Barrick Gold US – for $1bn (C$1.38bn) in cash.
The transaction also includes an option for NOVAGOLD to acquire outstanding debt related to the project for $90m, if purchased before the deal closes, or $100m if purchased within 18 months after closing.
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The Donlin Gold project is a proposed mining operation with an estimated 39 million ounces (moz) of gold reserves.
The project is owned by Donlin Gold, which was previously co-owned by subsidiaries of Barrick Gold and NOVAGOLD, each holding a 50% stake.
NOVAGOLD will buy an additional 10% stake in Donlin Gold for $200m, increasing its ownership from 50% to 60%, while Paulson will purchase a 40% stake for $800m.
Following this deal, Paulson and NOVAGOLD will jointly manage the Donlin Gold Project as equal partners.
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By GlobalDataThe transaction is part of Barrick’s strategy to optimise its asset portfolio, focusing on sustainable, long-life Tier 1 gold and copper operations, and advance growth projects.
The proceeds from the sale will be used to bolster Barrick’s balance sheet, support future investments and maintain its commitment to delivering shareholder returns.
Barrick president and chief executive Mark Bristow said: “The Donlin agreement allows Barrick to exit the Donlin Gold Project at an attractive valuation, while allowing NOVAGOLD and Paulson to pursue the development of the project.
“This is a good example of an instance where an asset we own might be better suited in the hands of others, while we pursue our priority portfolio of Barrick-managed growth projects.”
Completion of the sale is subject to customary closing conditions and regulatory approvals, with expectations to finalise the deal between late in the second quarter (Q2) and early in the third quarter (Q3) of 2025.
Following the deal’s closure, Donlin Gold plans to update its feasibility study, refocus drilling on resource expansion, advance technical work, support permitting and strengthen community engagement.
Additionally, Barrick is seeking to divest its Hemlo gold mine in Ontario, Canada, as part of a strategy to leverage high gold prices and interest in North American mining assets, reported Bloomberg, citing people with knowledge of the matter.
Hemlo is Barrick’s last mine in the country. The sale process began in April, with the Canadian Imperial Bank of Commerce tasked with finding buyers.
Earlier this month, Barrick Gold proposed dropping ‘gold’ from its name and rebranding to Barrick Mining to reflect its push into copper operations.
