- Announced a pivotal transaction with Paulson Advisers – NOVAGOLD acquired an additional 10% economic interest increasing its stake to 60% in Donlin Gold LLC to advance the project to the next phase of an updated Feasibility Study.
- Strengthened the Company’s treasury by completing a public equity offering and a private placement of 65 million shares, resulting in approximately $234 million in net proceeds.
- Advanced the Donlin Gold 15,000-meter drill program now focused on converting and expanding reserves and resources.
VANCOUVER, British Columbia, June 25, 2025 (GLOBE NEWSWIRE) — NOVAGOLD RESOURCES INC. (“NOVAGOLD” or “the Company”) ((NYSE American, TSX:NG) today filed its 2025 second quarter report and provided an update on its Tier One1 gold development project, Donlin Gold, which is owned 60 percent by NOVAGOLD and 40 percent by funds managed by Paulson Advisers LLC (“Paulson”).
Details of the financial results for the quarter ended May 31, 2025, are presented in the consolidated financial statements and quarterly report on Form 10-Q filed on June 25, 2025, that is available on the Company’s website at www.novagold.com, on SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov. All amounts are in thousands of U.S. dollars.
As detailed in the above filings, after closing a public equity offering and private placement on May 9, 2025, NOVAGOLD held approximately $319 million in cash and term deposits as of May 31, 2025, and reported net second quarter cash expenditures of $8.3 million — including $6.8 million to fund NOVAGOLD’s share of the Donlin Gold project and $1.6 million in corporate general and administrative costs.
For the second quarter of 2025, the Company reported earnings of ($54,275) and earnings per share of ($0.15), primarily due to a non-cash, non-recurring charge of $39,607 related to the warrants issued under the backstop commitment agreement announced during the quarter. As the commitment expired unexercised during the quarter, the fair value of the issued warrants was recorded as a non-cash expense impacting the three- and six-month earnings per share results ending May 31, 2025 by $0.11 and $0.12 after-tax, respectively. Excluding the impact of this one-time charge, NOVAGOLD’s results for the first three and six months of fiscal 2025 reflect higher expenditures at Donlin Gold, while remaining in line with budget, due to ongoing 2025 field program underway since February.
Subsequent to quarter end, NOVAGOLD and Paulson completed a $1 billion acquisition2 of Barrick Mining Corporation’s (“Barrick”) 50 percent interest in Donlin Gold LLC (the “Donlin Gold Transaction”), increasing NOVAGOLD’s interest to 60 percent. Additionally, the Company closed the public offering overallotment option exercise early in the third quarter, resulting in approximately $26 million in net proceeds. Pro-forma the June 3, 2025 closing of the Donlin Gold Transaction, including the direct legal and transaction costs, and the June 5, 2025 closing of the overallotment option, NOVAGOLD’s treasury was approximately $136 million in cash and term deposits.
In the second quarter of 2025, NOVAGOLD achieved the following milestones:
- Together with Paulson, announced the $1 billion acquisition of Barrick’s 50% interest in Donlin Gold LLC, with the Company increasing its economic interest to 60% and Paulson purchasing a 40% interest. This transaction marks a significant milestone in a long-term strategy to advance Donlin Gold.
- Funded the acquisition of the additional 10% interest in Donlin Gold LLC through a combination of an underwritten public offering ($195.2 million or approximately 48 million shares, not including the overallotment option that closed on June 5, 2025) and a concurrent private placement ($64.4 million or approximately 17.2 million shares) that closed on May 9, 2025 — the proceeds from which were used by NOVAGOLD to purchase an additional 10% interest in Donlin Gold LLC, fund its share of expenses to update the Donlin Gold Feasibility Study, and for general corporate purposes.
- Increased the Company’s treasury to approximately $319 million in cash and term deposits as of May 31, 2025.
- Held the 2025 virtual Annual General Meeting on May 15 at which all nominated directors were elected with strong shareholder participation.
In the second quarter of 2025, Donlin Gold LLC achieved the following milestones:
- Initiated efforts to prepare for the updated Feasibility Study, following completion of the Donlin Gold Transaction. A dedicated project team will be assembled at Donlin Gold to advance this work. The contract(s) for this work are expected to be awarded by year-end.
- Commenced drilling in February with a total of approximately 8,401 meters completed out of 15,000 planned meters now focused on resource conversion and expansion, after the announcement of the Donlin Gold Transaction.
- Met with the Alaska Congressional delegation and industry officials in Washington, D.C. to introduce Donlin Gold’s new General Manager, Todd Dahlman, and reinforce the project’s importance to Alaska and the Yukon-Kuskokwim (Y-K) region.
- Continued to support ecological, environmental, and health and safety initiatives throughout the Y-K region.
- Advanced permitting efforts, with comments from the Alaska Department of Natural Resources (ADNR) on the Dam Safety Certificates preliminary design packages expected in 2025. Bids were received and are currently being evaluated for the Dam Safety Certificates detailed design package work.
President’s Message
This quarter was transformational in numerous ways for NOVAGOLD — starting with the announcement of the transaction whereby the Company and Paulson agreed to purchase Barrick’s 50 percent stake in the Donlin Gold project, which closed on June 3, 2025, increasing our economic interest to 60 percent and reintroducing the Company to the market at large with a successful roadshow in the U.S. and Europe. This watershed event was followed by an oversubscribed public equity offering and private placement that enabled us to pay for the additional 10 percent stake in the project and fund ongoing activities, including our share of costs for an updated Donlin Gold Feasibility Study. Our new partnership with Paulson will allow us to now advance one of the world’s largest-known gold development projects — one that has its key permits in hand and is located in Alaska, a stable, Tier One3, mining-friendly jurisdiction. We are beyond thrilled to work with Paulson to advance activities at Donlin Gold in a responsible and thoughtful manner for the benefit of all stakeholders.
A New Partnership Marks a Pivotal Catalyst to Advance Donlin Gold
The past quarter marked a significant turning point with the introduction of our new Donlin Gold partner, Paulson. This collaboration represents a major milestone in our ongoing commitment to unlock the full value of the Donlin Gold project. The personal involvement of John Paulson — one of the most respected and forward-thinking investors in the gold sector — underscores the exceptional quality of the Donlin Gold project.
As one of the largest known undeveloped gold deposits globally4, with approximately 39 million ounces in Measured and Indicated Resources at a grade of 2.24 grams per tonne5 — more than twice the industry average6 — we believe Donlin Gold offers significant production and exploration upside potential7. Completing the Donlin Gold Transaction was a strategic achievement, opening a new and exciting chapter in the development of this cost-effective8, long-term open-pit project, in Alaska, a state that welcomes responsible economic development.
Adding Valuation Through the Drill Bit
In the second quarter of 2025, Donlin Gold made substantial progress on key initiatives and activities including the commencement of Donlin Gold’s 15,000-meter drill program which pivoted on May 4, 2025, to prioritize resource conversion and expansion with a crew of 60 at site. At quarter end, a total of 8,401 out of 15,000 meters planned was completed. Earlier drilling results at Donlin Gold have constituted a key distinguishing factor among mining assets
Reinforcing the Project’s Importance Through Engagement and Support for Environmental, Cultural, and Social Initiatives in the Y-K Region
During the second quarter of 2025, Donlin Gold’s new General Manager and other team members travelled to Washington, D.C. to meet with the Alaska Congressional delegation, Governor Mike Dunleavy, Karen Kelleher, Alaska’s Bureau of Land Management acting Director, Department of Interior representatives, and other industry representatives and elected officials, reinforcing the project’s importance to Alaska and the Y-K region.
In March, Donlin Gold and NOVAGOLD conducted a follow-up community meeting in Crooked Creek, the closest village to the project, to share information, answer questions, and discuss the project’s importance. Additionally, in May, Donlin Gold hosted the fifth Subsistence Community Advisory Committee (SCAC) meeting at the Donlin Gold project site, which included tours …