Barrick Gold, one of the world’s largest gold producers, has long had its eyes on developing the Donlin project. But after years of limited progress, Barrick is choosing to move on.
The company will receive $1 billion in cash for its 50% share in Donlin. An additional $100 million may be paid within 18 months after the deal closes, depending on certain conditions. NovaGold, which already owns the other half of the project, is increasing its stake by 20%, while the remaining 80% will go to John Paulson — a billionaire known for his sharp investment plays in gold.
The deal is expected to close in the second or early third quarter of 2025.
The Donlin Gold Project is located in western Alaska, a remote area rich in mineral resources. It is considered one of the largest untapped gold reserves in the world, with approximately 39 million ounces of gold in measured and indicated resources.
If developed as planned, the Donlin mine could produce around 1 million ounces of gold per year over a 27-year life span. That would make it one of the top gold-producing sites globally.
However, Donlin has also been a long and costly endeavor, facing environmental, logistical, and permitting challenges. Barrick Gold and NovaGold have been partners in this project for over 20 years, but progress has been slow.
This move by Barrick Gold appears to be part of a broader plan to optimize its portfolio. The company is shifting focus toward more immediately productive assets, rather than continuing to wait for long-term projects like Donlin to come online.
In a statement, Barrick CEO Mark Bristow emphasized that the company remains focused on maximizing returns for shareholders and investing in projects that offer near-term growth and profitability.
Selling the Donlin stake allows Barrick to:
For Barrick, it’s a strategic exit that helps tidy up its portfolio while generating a large sum of money.
NovaGold is the other key player in this transaction — and they’re doubling down on Donlin. By acquiring an additional 20% interest, the company will own 60% of the project after the deal closes.
The move reflects NovaGold’s continued belief in the long-term value of the Donlin project. CEO Greg Lang said that the acquisition strengthens NovaGold’s position as a leading North American gold developer and brings them closer to unlocking the project’s full potential.
In addition to its increased ownership, NovaGold has an option to buy $100 million in debt owed by Donlin to Barrick at a slight discount ($90 million) before the deal closes. This gives NovaGold even more control and flexibility in managing Donlin’s financial structure going forward.
John Paulson is no stranger to gold. The billionaire investor made his fortune during the 2008 financial crisis and has been a vocal supporter of gold as a hedge against inflation and market volatility.
Paulson’s investment in the Donlin project shows confidence in its long-term value, even though it has faced many delays. His private investment firm, Paulson & Co., is buying the 80% chunk of Barrick’s stake not going to NovaGold.
This move represents a massive bet on gold’s future value — and the potential of the Donlin mine in particular.
The news of the sale has been welcomed by investors. Barrick Gold’s U.S.-listed shares went up 1.7% in early trading following the announcement. NovaGold’s stock saw an even bigger boost, climbing nearly 7%.
The transaction is expected to close by mid to late 2025, subject to regulatory approvals and customary closing conditions.
Once completed, the ownership structure of Donlin will be:
This new structure could speed up decision-making and potentially accelerate development at the site.
The Donlin Gold Project is one of Alaska’s most important undeveloped resources. Its development could bring:
However, it’s also a sensitive project with strong environmental oversight. Native corporations Calista Corporation and The Kuskokwim Corporation, which own the land and mineral rights respectively, support the project — but many environmental groups and some locals have raised concerns.
With new owners taking charge, the project could gain fresh momentum — but it will still have to navigate Alaska’s regulatory and community landscape.
The Barrick Gold Donlin sale marks a turning point for all parties involved. Barrick exits a long-term, capital-intensive project and frees up over $1 billion in cash. NovaGold strengthens its control and deepens its commitment to Donlin. And John Paulson places a big bet on the future of gold mining in Alaska.
While it’s too early to predict when — or if — Donlin will become a fully operational mine, the pieces are now in place for real progress.
For Barrick, this may just be one step in a broader plan to reshape its operations. For NovaGold and Paulson, it’s a fresh opportunity to push forward what could be one of the most valuable gold mines on Earth.
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