Barrick Gold signs deal to sell its stake in Donlin gold project in Alaska

Photo: The Canadian Press

Barrick Gold Corp. logo is shown in a handout. THE CANADIAN PRESS/HO

Barrick Gold Corp. has signed a deal to sell its 50 per cent interest in the Donlin gold project in Alaska to its partner NovaGold Resources Inc. and Paulson Advisers LLC for US$1 billion in cash.

NovaGold already holds the other half of the Donlin project.

Once the deal announced Tuesday is complete, NovaGold will own 60 per cent and Paulson will hold a 40 per cent stake in the project.

Barrick chief executive Mark Bristow says the deal allows Barrick to exit the Donlin project at an attractive valuation, while allowing NovaGold and Paulson to pursue the development of the project.

In addition, Barrick has granted NovaGold an option to buy the outstanding debt owed to Barrick in connection with the project for US$90 million if purchased before closing, or for US$100 million if purchased within 18 months from closing, when the option expires.

The deal is subject to customary closing conditions and required regulatory approvals. It is expected to close in the second quarter or early in the third quarter of 2025.