NOVAGOLD Raises $294M, Holds $393M Cash and Launches Donlin Gold Feasibility Study
NOVAGOLD completed an upsized bought deal private placement raising approximately $294 million, ending Q1 with $393 million in cash and term deposits and reporting $20.8 million in operational cash expenditures. It launched the Donlin Gold feasibility study by appointing Fluor and awarding WSP, Worley, and Hatch infrastructure contracts.
1. First Quarter Financial Results
NOVAGOLD completed an upsized bought deal private placement in February, raising net proceeds of approximately $294 million. The company ended the quarter with $392.5 million in cash and term deposits and reported $20.8 million in operational cash expenditures, resulting in a net loss of $15.4 million (EPS −$0.04).
2. Bankable Feasibility Study Launch
The company appointed Fluor Corporation as lead engineering firm to direct and integrate all specialist workstreams for the Donlin Gold Bankable Feasibility Study, which is expected to be completed in 2027 to support project financing and development.
3. Engineering Contracts Awarded
Specialist contractors WSP USA, Worley Alaska, and Hatch Ltd. were awarded contracts for the on-site power plant, natural gas pipeline, and pressure oxidation circuit and oxygen plant, advancing critical infrastructure and processing components.
4. Energy Infrastructure LOI
Donlin Gold signed a non-binding letter of intent with Glenfarne Alaska LNG to jointly evaluate natural gas supply from the Alaska LNG pipeline for on-site power generation, potentially improving cost efficiencies and project economics.