NovaGold Resources Inc. has agreed to acquire billionaire investor John Paulson’s 40% stake in the Donlin Gold project in Alaska, consolidating full ownership of the large undeveloped mine. The transaction, structured as an all-stock deal, will create Nova Gold Corporation, a new entity where existing NovaGold shareholders will hold nearly 65% and Paulson will receive approximately 35%. This move adds over 16 million ounces of measured and indicated resources to NovaGold, including 13 million ounces in proven and probable reserves.

"Consolidating our interest in Donlin into NOVAGOLD enhances Donlin’s organizational structure and will facilitate, streamline and expedite the development of the Donlin mine," stated John Paulson. Expected to close in the fourth quarter, the deal reflects a trend of gold miners consolidating tier-one assets amidst strong bullion prices. By eliminating split ownership, NovaGold aims to improve access to government agencies and sovereign wealth funds for the project's development.

Nova Gold Corporation will be co-chaired by NovaGold chairman Thomas Kaplan and John Paulson. The Donlin Gold project boasts approximately 40 million measured and indicated ounces, grading 2.22 grams per tonne, positioning it as one of the industry's largest and highest-grade undeveloped gold deposits. The mine is projected to produce around 1.1 million ounces annually over 27 years.