NOVAGOLD to buy Paulson's Donlin stake in $4.2B all-stock deal
What's the deal? NOVAGOLD ResourcesDealroom has a profile for this one. Try Dealroom → said on Wednesday it will acquire the Donlin GoldDealroom has a profile for this one. Try Dealroom → shares it does not already own from Paulson Advisors in an all-stock deal, creating a gold producer worth US$4.2 billion. The combination forms a new company, NovaGold Corporation, incorporated in Delaware.
The terms: NOVAGOLD shareholders will own nearly 65% of the new entity, with Paulson receiving about 35% for its Donlin Gold interest. Including its existing equity in NOVAGOLD, Paulson would hold roughly 40% of the combined company.
What changes? The new company will be co-chaired by NOVAGOLD chairman Thomas Kaplan and John Paulson. Its board expands to 11 directors from 10.
Why now? A record rally in gold prices has bolstered miners' cash flows and improved their access to capital. That has pushed companies to expand reserves and grow their presence in safer mining regions such as Canada and the US.
The signal: Consolidating ownership of a single US asset under one entity reflects how high prices are reshaping the sector, with miners betting on stable jurisdictions to secure long-term supply.
Read more: ca.headtopics.com
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