NovaGold Resources Inc., a company focused on the development of the Donlin Gold project in Alaska, has reported a significant operational shift following a pivotal transaction. NovaGold increased its economic interest in Donlin Gold LLC from 50% to 60% after acquiring Barrick Mining Corporation’s 50% stake for $1 billion, which closed on June 3, 2025. The Donlin Gold project is recognized as one of the largest and highest-grade undeveloped gold deposits globally, with 39 million ounces in Measured and Indicated resources grading approximately 2.24 grams per tonne.

The company is not in decline but rather in a rising trajectory, driven by the added interest in Donlin Gold and its substantial treasury. The adjustments in ownership control and planned advancements set the stage for an updated feasibility study, expected to commence later this year and take about two years to complete.

For the second quarter of 2025, NovaGold reported a net loss of $54.3 million or $0.15 per share, primarily due to a $39.6 million non-cash, non-recurring charge related to warrants issued in connection with the Barrick acquisition. Excluding this charge, reduced general and administrative expenses and increased operational costs resulted in a net loss reflecting ongoing adjustments to the company’s budget amid rising operational activities at the Donlin site.

The company’s treasury improved significantly, totaling approximately $319 million as of May 31, 2025, with cash expenditures amounting to $8.3 million for the quarter. Of this total, $6.8 million was allocated to its share of the Donlin Gold project, while general and administrative costs were $1.6 million during the same period. The treasury increase was supported by a successful capital raise via a public offering and private placement, generating approximately $234 million in net proceeds.

Looking forward, NovaGold expects its share of funding for Donlin Gold to exceed previously issued guidance of $21.5 million for 2025, reflecting the increased interest ownership and ongoing operational activities. Consequently, General and administrative expenses may also surpass the prior guidance of $16 million due to legal and transaction costs associated with the acquisition process.

Work at the Donlin Gold site has progressed with a 15,000-meter drill program underway, focused on resource conversion and expansion, with 8,401 meters completed by quarter-end. Regulatory permitting continues to advance, with all necessary permits reportedly intact despite ongoing legal challenges.

With this financial foundation and enhanced operational capacity, NovaGold aims to revitalize its strategic position in the gold development sector, leveraging new partnerships and ongoing developments at the Donlin Gold project to foster growth. The company is poised for further announcements and updates as it moves into the next phase of project development and stakeholder engagement.