Canada’s Barrick Gold (NYSE:GOLD)(TSX:ABX) is exiting the Donlin Gold project in Alaska by selling its 50% stake for $1 billion to billionaire John Paulson and Novagold Resources (TSX: NG).
Paulson Advisory LLC will acquire 80% of Barrick Gold’s interest Dolin Gold, with Novagold purchasing the remaining 20%. Both parties will contribute to the purchase price proportionally, according to separate statements from the mining companies.
Novagold will also have the option to buy debt owed to Barrick for $90 million if completed before closing, or $100 million within 18 months after the deal closes.
Paulson, who heads hedge fund Paulson & Co. and is already a major Novagold investor, will become “a full and equal partner” in the project. Novagold and Barrick formed the Donlin joint venture in 2007.
Barrick said it would use proceeds from the sale to strengthen its balance sheet and boost…
