Barrick Gold, one of the world’s leading gold producers, continues its strategic restructuring and sells its 50% stake in the Donlin Gold Project in Alaska. This strategic sale is part of an agreement with Paulson Advisers and NOVAGOLD Resources Inc, who together will pay up to 1.1 billion USD.
Details of the Sale
Paulson Advisers will acquire 80% of Barrick’s stake in the Donlin Gold Project, while NOVAGOLD will acquire the remaining 20%. The transaction includes a cash payment of around 1 billion USD. Additionally, NOVAGOLD will receive an option to take on project-related debt for either 90 million USD before closing or 100 million USD within 18 months after closing. The completion of this transaction is expected by the end of the second or the beginning of the third quarter of 2025, subject to regulatory approvals and customary conditions.
Strategic Importance
The sale is part of Barrick’s strategy for portfolio optimization with a focus on Tier One operations. Through this sale, Barrick strengthens its balance sheet and releases funds to strategically push forward future investments and increase shareholder returns. The Donlin Gold Project, which is considered a significant deposit with approximately 39 million ounces of gold reserves, represents an opportunity, but Barrick is simultaneously placing a stronger focus on copper projects and other core areas of its business development.
For investors, this step signals a clear direction towards growth in the copper segment as well as a focus on high-priority and profitable projects. The transaction has been positively received, reflected in a pre-market increase of Barrick Gold shares by about 1.7% and a rise in NOVAGOLD shares by approximately 6.8%.
Summary
- Barrick sells its half of the Donlin Gold Project for up to 1.1 billion USD.
- Buyers are Paulson Advisers (80%) and NOVAGOLD (20%).
- The aim is portfolio optimization in favor of more focused investments, particularly in the copper sector.
- The proceeds are to strengthen the balance sheet and improve shareholder returns.
- The transaction is expected to be completed in Q2/Q3 2025.
This strategic restructuring underscores Barrick’s long-term focus on profitable core projects while strengthening its financial foundation for sustainable growth.