Toronto – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) has announced a major divestment from the Donlin Gold Project in Alaska, selling its 50% interest for $1 billion in cash. The transaction involves affiliates of Paulson Advisers LLC and NOVAGOLD Resources Inc. (NYSE American, TSX:NG), marking a strategic shift in Barrick’s project portfolio.
The deal, facilitated by Barrick’s subsidiary, Barrick Gold U.S. Inc., allows NOVAGOLD and Paulson to acquire 20% and 80% of Barrick’s stake in Donlin Gold LLC respectively, the company that holds the project. Both parties will contribute pro rata to the purchase price, with NOVAGOLD’s share backstopped by Paulson and other existing shareholders.
Optional Debt Purchase Clause
As part of the agreement, Barrick has granted NOVAGOLD an option to buy out the debt connected to the Donlin Project. The debt can be acquired for $90 million if purchased before closing, or $100 million if exercised within 18 months post-closing. If the option remains unexercised, the debt will continue under its current terms.
Strategic Portfolio Optimization
According to Mark Bristow, President and CEO of Barrick, the sale aligns with the company’s focus on “long-life, sustainable Tier One gold and copper operations.” Bristow emphasized that the Donlin divestment is an example of a project that might be more effectively developed by other parties while Barrick prioritizes assets it directly operates.
“The Donlin agreement allows Barrick to exit the project at an attractive valuation while continuing to deliver on our long-term strategic goals,” Bristow noted.
Transaction Timeline and Advisors
The deal is expected to close in late Q2 or early Q3 of 2025, pending customary closing conditions and regulatory approvals. Barrick is being advised by CIBC World Markets Inc. as financial advisor, with legal counsel provided by Davies Ward Phillips & Vineberg LLP and Holland & Hart LLP.
Use of Proceeds
Proceeds from the sale will be used to strengthen Barrick’s balance sheet, reinvest in high-priority growth projects, and continue delivering value to shareholders.
For more insights on Barrick’s operations, explore our coverage of Barrick’s Pascua Lama project and the company’s strategic focus in 2025.