VANCOUVER, July 22, 2026, 14:01 PDT — U.S. and Canadian stock exchanges have closed.
- Shares of NovaGold finished at $6.21 in New York, gaining 10.3%, with a trading volume of 25.7 million shares.
- Legacy shareholders would keep approximately 65% ownership of the fully consolidated Donlin entity.
- The agreement needs approval from two-thirds of voters, aiming to close in the fourth quarter.
NovaGold Resources Inc. (NYSEAMERICAN:NG; TSE:NG) surged after it reached a deal to acquire Paulson Advisers’ 40% interest in Donlin Gold. Shares in New York rose 10.3% to $6.21, while the Toronto listing advanced 10.1% to C$8.74.
The deal would form a U.S.-based gold developer with a projected equity value of $4.2 billion. NovaGold’s stake in Donlin would rise from 60% to full ownership.
Ownership distribution was a key interest for investors. Holders of existing NovaGold shares, including Paulson’s stake, would control roughly 65% of the merged parent company. Paulson is set to acquire an additional 35% in return for its project holding.
As a result, legacy investors’ indirect stake in Donlin rises from 60% to approximately 65%. The estimated project exposure per legacy share goes up by about 8.3%. This is an initial example and does not constitute official company guidance.
| Preliminary legacy-share economics | Before | Pro forma | Change |
|---|---|---|---|
| Company’s Donlin stake | 60% | 100% | +40 points |
| Proportion of company for legacy shares | 100% | Around 65% | -35 points |
| Legacy holders’ effective Donlin stake | 60% | Roughly 65% | +5 points |
| Indexed Donlin exposure per legacy share | 100.0 | Approximately 108.3 | +8.3% |
This estimate is based on the roughly 65% fully diluted division and the declared one-for-one exchange ratio. Actual numbers may differ depending on the final share count at closing.
NovaGold rose 10.3%, outperforming the mechanical uplift by roughly two percentage points. This difference does not represent a straightforward valuation premium. The share price is also influenced by cash, liabilities, and anticipated financing needs.
About 25.7 million shares changed hands, nearly 7.5 times higher than the average seen over the past five sessions.
The announcement turned around previous losses. NovaGold gained 8.9% compared to its July 15 close. On July 17, it traded at a low of $5.08, close to its yearly low of $5.07.
Seabridge Gold Inc. NYSE:SA, a major gold developer in North America, rose 3.7%. NovaGold surpassed this, outperforming by approximately 6.6 percentage points. This lends weight to a deal-focused interpretation, though it is not conclusive.
Paulson’s newly issued shares carry a 10% discount based on Donlin’s implied value. The valuation is determined by NovaGold’s 10-day volume-weighted average price ending July 21. Shareholders will receive one new parent share for every current share held.
Paulson’s total economic stake would increase to approximately 40%, while his voting power will remain limited at 19.99%. The board will grow to 11 members, with Paulson having the right to put forward two nominees at first.
Chief Executive Greg Lang stated, “Our absolute focus will remain on completing the Bankable Feasibility Study.” The company aims to finish this in 2027. NOVAGOLD RESOURCES INC.
Donlin holds approximately 40 million gold ounces classified as measured and indicated. The stated grade is 2.22 grams per tonne. Projections call for annual production of 1.3 million ounces in the mine’s initial ten years.
Output is expected to average 1.1 million ounces annually for 27 years. Securing full ownership would provide over 520,000 attributable ounces each year in the initial ten years.
As of May 31, NovaGold’s cash and term deposits totaled $370.2 million. The company maintained its 2026 spending forecast at $98.5 million. Management plans to secure more funding for detailed engineering.
The deal needs backing from two-thirds of the votes cast. Directors and investors holding around 28% of the outstanding shares have entered support agreements. The transaction is anticipated to complete in the fourth quarter of 2026.
Looking to the coming week, investors are awaiting the expected additional regulatory filing. The document is anticipated to contain the transaction agreements. There is still no date set for the shareholder meeting.
Risks: The deal could be halted by shareholders or through legal action. Donlin is also subject to an ongoing permit dispute before the Alaska Supreme Court and has considerable funding requirements. Current permits are still valid while the legal process continues.
Initial market reaction was positive. The share price rose by more than the automatic increase from ownership changes. Whether that gap holds will depend on regulatory approvals, the 2027 research and access to funding.
