Home / Business and Economy / NOVAGOLD and Paulson Forge $4.2B Gold Giant
NOVAGOLD and Paulson Forge $4.2B Gold Giant
22 Jul
Summary
- NOVAGOLD will acquire remaining Donlin Gold shares from Paulson.
- The combined entity will be a gold producer valued at $4.2 billion.
- The deal is structured as an all-stock transaction expected to close this quarter.
NOVAGOLD Resources is set to acquire the remaining shares it does not already own in Donlin Gold from Paulson Advisors.
This all-stock transaction will create a new gold producer, NovaGold Corporation, with an estimated value of $4.2 billion.
Upon closing, NOVAGOLD shareholders are expected to hold nearly 65% of the new entity, with Paulson receiving approximately 35% for its stake in Donlin Gold. Including its existing equity in NOVAGOLD, Paulson would possess around 40% of the new company.
Incorporated in Delaware, the new company will be co-chaired by NOVAGOLD Chairman Thomas Kaplan and John Paulson. The board will expand to 11 directors. This significant deal is projected to conclude in the fourth quarter.
