Barrick Gold has reached an agreement to sell the 50% interest in the Donlin gold project in Alaska held by its subsidiary to affiliates of Paulson Advisers and NOVAGOLD Resources for $1 billion in cash.
In addition, Barrick has granted NOVAGOLD an option to purchase the outstanding debt owed to Barrick in connection with Donlin for $90 million if purchased prior to closing, or for $100 million if purchased within 18 months from closing, when the option expires.
“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,” said Barrick President and CEO Mark Bristow.
“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 transaction is expected to be completed late in the second quarter or early in the third quarter of 2025.
Donlin is located in the historic Kuskokwim Gold Belt of southwest Alaska, 10 miles north of the village of Crooked Creek.
Source: Barrick Gold