NOVAGOLD Resources to acquire Paulson's Donlin interests in $4.2 billion deal
NG•Deal details and project impact
The deal aims to end split control of Donlin Gold and create a single, fully owned U.S.-listed entity for improve access to governmental agencies and sovereign wealth funds to support its next phase of project development.
It adds over 16 million ounces of measured and indicated resources to NOVAGOLD Resources. This includes 13 million ounces contained in proven and probable reserves and increases projected attributable gold production by over 520,000 ounces annually for 10 years.
Upon completion of the deal, a new company — NovaGold Corporation — will be formed, with NOVAGOLD shareholders owning nearly 65% and Paulson receiving about 35% in exchange for its Donlin Gold interest.
Inclusive of its existing equity ownership in NOVAGOLD, New York-based Paulson would own approximately 40% in the new entity, the company said.
New company structure and closing timeline
The new company, which would be incorporated in Delaware, will be co-chaired by NOVAGOLD Chairman Thomas Kaplan and John Paulson, with its board expanded to 11 directors from 10.
The deal is expected to close in the fourth quarter.
NOVAGOLD to buy remaining Donlin Gold interests in all-stock deal
July 22 (Reuters) - NOVAGOLD Resources NG.TO said on Wednesday it would acquire the shares it does not already own in Donlin Gold from Paulson Advisors in an all-stock deal that would create a gold producer worth $4.2 billion.
U.S.-listed shares of NovaGold Resources rose 2.9% in premarket trading, supported by higher gold prices. GOL/
A record rally in gold has bolstered miners' cash flows and improved their access to capital, encouraging them to expand reserves of the precious metal and grow their presence in safer mining regions such as Canada and the United States.
