Barrick Announces Sale of Stake in Donlin Gold Project for Up To $1.1 Billion
Barrick Gold (NYSE:GOLD) has announced an agreement to sell its 50% stake in the Donlin Gold Project in Alaska for up to $1.1 billion. The deal includes a $1 billion cash payment from Paulson Advisers and NOVAGOLD Resources Inc., who will acquire 80% and 20% respectively of Barrick's interest in Donlin Gold
Additionally, NOVAGOLD has been granted an option to purchase outstanding project-related debt for $90 million if acquired before closing, or $100 million if purchased within 18 months post-closing. Several existing shareholders, including Paulson, will backstop NOVAGOLD's purchase commitment.
The transaction is expected to close in late Q2 or early Q3 2025, subject to regulatory approvals and customary closing conditions. Barrick plans to use the proceeds to strengthen its balance sheet, invest in future operations, and support shareholder returns.
Barrick Gold (NYSE:GOLD) ha annunciato un accordo per la vendita della sua partecipazione del 50% nel Donlin Gold Project in Alaska per un valore fino a 1,1 miliardi di dollari. L'accordo prevede un pagamento in contanti di 1 miliardo di dollari da parte di Paulson Advisers e NOVAGOLD Resources Inc., che acquisiranno rispettivamente l'80% e il 20% della quota di Barrick in Donlin Gold.
Inoltre, a NOVAGOLD è stata concessa un'opzione per acquistare il debito residuo legato al progetto per 90 milioni di dollari se acquisito prima della chiusura, oppure 100 milioni di dollari se acquistato entro 18 mesi dalla chiusura. Diversi azionisti attuali, tra cui Paulson, garantiranno l'impegno di acquisto di NOVAGOLD.
La transazione è prevista per la fine del secondo trimestre o l'inizio del terzo trimestre del 2025, subordinata alle approvazioni regolamentari e alle condizioni consuete di chiusura. Barrick intende utilizzare i proventi per rafforzare il proprio bilancio, investire nelle operazioni future e sostenere i ritorni per gli azionisti.
Barrick Gold (NYSE:GOLD) ha anunciado un acuerdo para vender su participación del 50% en el Donlin Gold Project en Alaska por hasta 1,1 mil millones de dólares. El acuerdo incluye un pago en efectivo de 1.000 millones de dólares por parte de Paulson Advisers y NOVAGOLD Resources Inc., que adquirirán el 80% y el 20% respectivamente del interés de Barrick en Donlin Gold.
Además, se ha otorgado a NOVAGOLD una opción para comprar la deuda pendiente relacionada con el proyecto por 90 millones de dólares si se adquiere antes del cierre, o 100 millones de dólares si se compra dentro de los 18 meses posteriores al cierre. Varios accionistas actuales, incluidos Paulson, respaldarán el compromiso de compra de NOVAGOLD.
Se espera que la transacción se cierre a finales del segundo trimestre o principios del tercer trimestre de 2025, sujeta a aprobaciones regulatorias y condiciones habituales de cierre. Barrick planea usar los ingresos para fortalecer su balance, invertir en operaciones futuras y apoyar los retornos a los accionistas.
Barrick Gold (NYSE:GOLD)는 알래스카에 위치한 Donlin Gold Project의 50% 지분을 최대 11억 달러에 매각하는 계약을 발표했습니다. 이 거래에는 Paulson Advisers와 NOVAGOLD Resources Inc.가 각각 Barrick의 Donlin Gold 지분 중 80%와 20%를 인수하며 10억 달러의 현금 지급이 포함됩니다.
또한 NOVAGOLD는 마감 전 취득 시 9천만 달러, 마감 후 18개월 이내 취득 시 1억 달러에 프로젝트 관련 미지급 부채를 매입할 수 있는 옵션을 부여받았습니다. Paulson을 포함한 여러 기존 주주들이 NOVAGOLD의 매입 약속을 지원할 예정입니다.
이번 거래는 규제 승인과 일반적인 마감 조건을 거쳐 2025년 2분기 말 또는 3분기 초에 완료될 것으로 예상됩니다. Barrick은 이번 매각 대금을 재무구조 강화, 미래 운영 투자, 주주 환원 지원에 사용할 계획입니다.
Barrick Gold (NYSE:GOLD) a annoncé un accord pour céder sa participation de 50 % dans le Donlin Gold Project en Alaska pour un montant pouvant atteindre 1,1 milliard de dollars. L'accord comprend un paiement en espèces d'un milliard de dollars de la part de Paulson Advisers et NOVAGOLD Resources Inc., qui acquerront respectivement 80 % et 20 % de la participation de Barrick dans Donlin Gold.
De plus, NOVAGOLD s'est vu accorder une option d'achat de la dette restante liée au projet pour 90 millions de dollars si elle est acquise avant la clôture, ou 100 millions de dollars si elle est achetée dans les 18 mois suivant la clôture. Plusieurs actionnaires actuels, dont Paulson, soutiendront l'engagement d'achat de NOVAGOLD.
La transaction devrait être finalisée fin du deuxième trimestre ou début du troisième trimestre 2025, sous réserve des approbations réglementaires et des conditions habituelles de clôture. Barrick prévoit d'utiliser les fonds pour renforcer son bilan, investir dans ses opérations futures et soutenir les rendements aux actionnaires.
Barrick Gold (NYSE:GOLD) hat eine Vereinbarung zum Verkauf seiner 50%-Beteiligung am Donlin Gold Project in Alaska für bis zu 1,1 Milliarden US-Dollar bekannt gegeben. Der Deal umfasst eine Barzahlung von 1 Milliarde US-Dollar durch Paulson Advisers und NOVAGOLD Resources Inc., die jeweils 80% bzw. 20% von Barricks Anteil an Donlin Gold übernehmen.
Zusätzlich wurde NOVAGOLD eine Option eingeräumt, ausstehende projektrelevante Schulden für 90 Millionen US-Dollar vor Abschluss oder für 100 Millionen US-Dollar innerhalb von 18 Monaten nach Abschluss zu erwerben. Mehrere bestehende Aktionäre, darunter Paulson, werden NOVAGOLDs Kaufverpflichtung absichern.
Der Abschluss der Transaktion wird für Ende Q2 oder Anfang Q3 2025 erwartet, vorbehaltlich behördlicher Genehmigungen und üblicher Abschlussbedingungen. Barrick plant, die Erlöse zur Stärkung der Bilanz, für zukünftige Investitionen und zur Unterstützung der Aktionärsrenditen zu verwenden.
- Substantial cash inflow of $1 billion from asset sale
- Additional potential income of $90-100 million from debt purchase option
- Strategic portfolio optimization focusing on Tier One operations
- Strengthening of balance sheet and increased shareholder return potential
- Loss of 50% ownership in potentially valuable Alaskan gold project
- Reduction in project portfolio diversification
Insights
Barrick's $1B divestment of Donlin Gold stake strengthens balance sheet while streamlining portfolio toward operated Tier One assets.
Barrick Gold's
The deal structure is particularly favorable, with Paulson Advisers acquiring
For Barrick shareholders, this represents a strategic win on multiple fronts. The company explicitly states the proceeds will strengthen its balance sheet, fund future investments, and support shareholder returns. This
The transaction demonstrates Barrick's commitment to portfolio discipline, divesting non-core assets at favorable terms while maintaining focus on operated properties with greater strategic value. With completion expected by early Q3 2025, this transaction strengthens Barrick's position to advance its growth pipeline while potentially enhancing capital returns to shareholders.
All amounts expressed in US dollars
TORONTO, April 22, 2025 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) today announced that it has reached an agreement to sell the 50 percent interest in the Donlin Gold Project in Alaska held by Barrick’s subsidiary Barrick Gold U.S. Inc. to affiliates of Paulson Advisers LLC (“Paulson”) and NOVAGOLD Resources Inc. (NYSE American, TSX:NG) for
Paulson and NOVAGOLD have agreed to acquire 80 percent and 20 percent, respectively, of Barrick’s subsidiary’s interest in Donlin Gold LLC, the entity that holds the Donlin Gold Project, with each purchaser contributing pro rata to the purchase price and several existing shareholders, including Paulson, backstopping NOVAGOLD’s purchase commitment.
Proceeds from the sale will be used to further strengthen the balance sheet, invest in our future and support our commitment to deliver returns to our shareholders.
Barrick president and chief executive Mark Bristow said Barrick remained committed to optimizing its portfolio of assets that align with its objective of focusing on long-life, sustainable Tier One gold and copper operations that it operates and advancing its priority portfolio of growth projects.
“The Donlin agreement allows Barrick to exit the Donlin Gold Project at an attractive valuation, while allowing NOVAGOLD and Paulson to pursue the development of the project. This is a good example of an instance where an asset we own might be better suited in the hands of others, while we pursue our priority portfolio of Barrick-managed growth projects,” said Bristow.
Subject to the satisfaction of customary closing conditions and obtaining the required regulatory approvals, the transaction is expected to be completed late in the second quarter or early in the third quarter of 2025.
CIBC World Markets Inc. is acting as financial advisor to Barrick. Davies Ward Phillips & Vineberg LLP and Holland & Hart LLP are acting as legal counsel to Barrick.
Enquiries
Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained in this press release, including any information related to the completion and timing of the sale of Barrick’s interest in the Donlin Gold project, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “plan”, “would”, “expected”, “will”, and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: (i) timing for completion of the transaction with Paulson and NOVAGOLD; and (ii) the anticipated use of proceeds from completion of the transaction.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions contained in this news release, which may prove to be incorrect, include, but are not limited to: (i) that the parties will complete the transaction and that Barrick will receive the consideration payable in accordance with, and on the timeline contemplated by, the terms and conditions of the relevant agreements, on a basis consistent with its expectations; and (ii) that the conditions to the completion of the transaction will be satisfied within the expected timeframe or at all. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements, including the risk that the sale transaction will not be completed for any reason. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this press release are qualified by these cautionary statements and those made in Barrick’s most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities which contain a more detailed discussion of some of the factors underlying forward-looking statements, and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
FAQ
How much is Barrick Gold (GOLD) selling its Donlin Gold stake for?
When will Barrick Gold's (GOLD) Donlin Gold sale transaction close?
How will Barrick Gold (GOLD) use the proceeds from the Donlin Gold sale?
What is the ownership split between Paulson and NOVAGOLD in the Donlin Gold acquisition from GOLD?
