Barrick to Divest Donlin Gold Project to NOVAGOLD, Paulson for $1BN

Canadian mining company Barrick Gold has agreed to sell its 50% stake in the Donlin Gold Project in Alaska, held through its subsidiary Barrick Gold US, to affiliates of Paulson Advisers and NOVAGOLD Resources for $1 billion (C$1.38 billion) in cash. The deal includes an option for NOVAGOLD to purchase outstanding project debt for $90 million if acquired before closing, or $100 million if within 18 months post-closing.

Paulson and NOVAGOLD will jointly manage the Donlin Gold Project as equal partners after the deal.

The Donlin Gold Project, a proposed mining operation with an estimated 39 million ounces of gold reserves, is managed by Donlin Gold, previously co-owned equally by Barrick Gold and NOVAGOLD subsidiaries. Under the agreement, NOVAGOLD will acquire an additional 10% stake for $200 million, increasing its ownership to 60%, while Paulson Advisers will purchase a 40% stake for $800 million. Post-transaction, NOVAGOLD and Paulson will jointly oversee the project as equal partners.

Barrick’s president and chief executive, Mark Bristow, stated: “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.” He added: “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.”

The sale aligns with Barrick’s strategy to streamline its portfolio, focusing on sustainable, high-value gold and copper operations and advancing key growth initiatives. The proceeds will strengthen Barrick’s financial position, support future investments, and enhance shareholder returns. The transaction, subject to standard closing conditions and regulatory approvals, is expected to finalize between late second quarter and early third quarter of 2025.

After the deal closes, Donlin Gold plans to revise its feasibility study, expand resource drilling, progress technical work, advance permitting, and deepen community engagement in Alaska. The project aims to leverage its significant gold reserves to contribute to the region’s economic development.

Separately, Barrick is exploring the sale of its Hemlo gold mine in Ontario, Canada, its last mining operation in the country. The process, initiated in April with assistance from the Canadian Imperial Bank of Commerce, seeks to capitalize on strong gold prices and interest in North American mining assets. Additionally, Barrick recently proposed rebranding from Barrick Gold to Barrick Mining, reflecting its growing focus on copper alongside gold operations.