Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) is selling its 50% part in the Donlin Gold Project in Alaska to Paulson Advisers LLC and NOVAGOLD Resources Inc. for $1 billion cash.
Barrick also lets NOVAGOLD buy project debt for $90 million before closing, or $100 million within 18 months after the deal ends. The deal should close by late Q2 or early Q3 2025, if approved by officials.
“This plan lets Barrick leave the Donlin Gold Project with a strong value, while giving NOVAGOLD and Paulson a chance to grow the project,” said Barrick CEO Mark Bristow, who showed the company is focused on top-tier gold and copper assets.
The deal will help Barrick improve its balance sheet and invest in important, long-lasting operations. Paulson will get 80% interest and NOVAGOLD 20%, with backing from main partners.
Mining Sector Impact
This big sale shows more mining groups want to focus their holdings. Experts think the deal will help NOVAGOLD grow and keep Barrick strong in top-tier mining.
Global Market Effects
Gold prices went up after the news, showing hope in gold-backed investments. This move shows how the world market counts on key partnerships to push industry growth.
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