Strategic Disposal for Portfolio Consolidation
Barrick Gold is taking another step towards portfolio optimization by selling its 50% stake in the Donlin Gold Project in Alaska. This sale is part of a deal in which Paulson Advisers will acquire 80% and NOVAGOLD Resources Inc. will take 20% of Barrick’s stake. The transaction amounts to up to $1.1 billion, with Barrick receiving a cash payment of about $1 billion.
Option for NOVAGOLD and Financial Goals
NOVAGOLD has been granted an option to take on project-related debt for either $90 million before completion or for $100 million within 18 months after closing. This agreement provides the companies with financial flexibility and strengthens future project development.
Goals and Strategic Focus
The completion of the deal is expected by the end of the second or early third quarter of 2025, pending regulatory approvals and other conditions. With this sale, Barrick aims to improve its balance sheet, invest in growth areas, and increase returns for shareholders.
This strategic decision is part of a comprehensive focus on Tier-One operations and copper projects. While diversification in the gold sector decreases, Barrick regains financial resources to strengthen its core operations. The Donlin Project, previously a significant asset with an estimated 39 million ounces of gold, will no longer be part of Barrick’s strategy due to the sale.
Overall, this step marks a shift in the company’s direction towards a greater emphasis on copper as a growing commodity market alongside traditional gold mining.