NOVAGOLD acquires more stake in Donlin Gold LLC, completes equity offering, and strengthens treasury

From GlobeNewswire: 2025-06-25 08:05:00

NOVAGOLD acquired an additional 10% stake in Donlin Gold LLC, increasing its ownership to 60%, advancing the project to the next phase of an updated Feasibility Study. The company strengthened its treasury by completing a public equity offering and private placement, resulting in approximately $234 million in net proceeds. The Donlin Gold 15,000-meter drill program is now focused on converting and expanding reserves and resources.

In the second quarter of 2025, NOVAGOLD reported earnings of ($54,275) due to a non-cash, non-recurring charge of $39,607 related to warrants issued under a backstop commitment agreement. Subsequent to quarter end, NOVAGOLD completed a $1 billion acquisition of Barrick’s 50% interest in Donlin Gold LLC, increasing its treasury to approximately $136 million in cash and term deposits.

Donlin Gold LLC initiated efforts to prepare for an updated Feasibility Study and commenced drilling in February, focusing on resource conversion and expansion. The project met with Alaska Congressional delegation and industry officials in Washington, D.C. to reinforce the project’s importance. Donlin Gold continues to support ecological, environmental, and health and safety initiatives in the Y-K region.

NOVAGOLD’s new partnership with Paulson marks a pivotal catalyst to advance Donlin Gold. The collaboration aims to unlock the full value of the project, which is one of the largest known undeveloped gold deposits globally with significant production and exploration upside potential. Completing the Donlin Gold Transaction opens a new chapter in the project’s development in Alaska.

Looking ahead, NOVAGOLD plans to commence the Feasibility Study update, execute the 2025 drill program focused on converting and expanding reserves, and engage with government representatives. The company aims to advance the Donlin Gold project through strategic initiatives, financial discipline, and stakeholder engagement. NOVAGOLD remains committed to transparent communication and sharing updates on key milestones in the future.



Read more at GlobeNewswire:: NOVAGOLD Files Second Quarter 2025 Report