NOVAGOLD Resources ended its fiscal third quarter with approximately $343.4 million in cash and term deposits as it advances plans to acquire the remaining 40% interest in Donlin Gold from Paulson Advisers and its affiliates.
NOVAGOLD currently owns 60% of Donlin Gold and expects the all-share transaction to increase its ownership to 100%.
The transaction is expected to close by year-end, subject to shareholder, court, regulatory, stock exchange, and other customary approvals.
Donlin Gold has also appointed Endeavour Financial and Macquarie Capital to advise on development financing and infrastructure financing for the Alaska project.
NOVAGOLD reported third-quarter operational cash expenditures of $28.1 million.
That included $24.8 million to fund its share of Donlin Gold expenditures and $3.3 million of corporate general and administrative costs.
As a development-stage company without production, NOVAGOLD reported a quarterly loss of $36 million, or $0.08 per share.
Higher expenditures reflected ongoing work on the Donlin Gold Bankable Feasibility Study and increased professional fees related to the pending ownership transaction.
The company expects professional fees to remain elevated through the remainder of fiscal 2026 and into early fiscal 2027.
NOVAGOLD said its existing liquidity should be sufficient to complete the Donlin Gold feasibility study, fund corporate expenses for at least the next 12 months, and exercise its option to prepay the Barrick promissory note.
The Donlin Gold Bankable Feasibility Study remains targeted for completion in 2027.
Engineering work led by Fluor is continuing alongside geotechnical drilling and other technical work at proposed infrastructure and project sites.
NOVAGOLD has described Donlin Gold as having the potential to become the largest single gold mine in the U.S., with projected average production of approximately 1.3 million ounces annually during its first 10 full years.
