Barrick Mining (ABX) M&A Announcement summary

Deal rationale and strategic fit

• Partnership formed to acquire 50% of Donlin Gold from Barrick for $1 billion, aligning with a long-term vision to advance a world-class, high-grade gold project in a top jurisdiction.

• New co-ownership structure leverages complementary expertise in mine development, gold investment, and operational optimization.

• Project offers one of the largest, highest-grade undeveloped gold resources globally, with significant exploration upside and strong ESG and local partnerships.

• Alaska's favorable mining environment and established Native partnerships enhance project stability.

• Sale aligns with a strategy to focus on long-life, sustainable Tier One gold and copper operations managed directly, allowing redeployment of capital to priority growth projects.

Financial terms and conditions

• 50% interest in Donlin Gold sold for $1 billion, with Paulson contributing $800 million and NOVAGOLD $200 million; NOVAGOLD to use warrants and $30 million from treasury to finance its share.

• Option to purchase outstanding project debt for $90 million before closing or $100 million within 18 months post-closing; if not exercised, debt remains under existing terms.

• Five-year warrants to purchase 25.5 million shares at $3.00 per share issued to key investors.

• Backstop guarantee for up to $170 million of shares at $3.00/share provided by key investors.

Synergies and expected cost savings

• Partnership expected to accelerate feasibility, financing, and production milestones, leveraging operational and financial expertise for value creation.

• Paulson’s track record in optimizing mine plans and reducing costs, as seen in Detour Gold, is expected to benefit Donlin.