Billionaire investor John Paulson and NovaGold Resources, Inc. (AMEX:NG) have agreed to purchase a significant stake in the Donlin Gold project in Alaska. Barrick Gold Corp. (NYSE:GOLD) will sell its entire 50% interest in the project for $1 billion in cash.
The Details: Novagold will purchase a 10% stake in Donlin Gold for $200 million, raising its ownership to 60% from 50%.
Paulson & Co. will acquire the remaining 40% for $800 million, becoming a full and equal partner in managing the Donlin Gold project.
The Donlin Gold Project is a planned mining operation located in Alaska, with estimated gold reserves of approximately 39 million ounces -- making it one of the world's largest undeveloped gold deposits.
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Paulson, who has several notable investments in gold miners, called Donlin Gold "one of the most attractive development gold projects in the world."
"With 39 million ounces of gold at double the industry average grade, and an optimal location in the prime jurisdiction of Alaska -- already the second largest gold-producing state in the United States -- we believe that the project could create value for decades to come," Paulson added.
Paulson's Gold Miners: The billionaire investor's hedge fund Paulson & Co. also holds a 37% stake in International Tower Hill Mines Ltd. (AMEX:THM) and a $264.3 million stake in Perpetua Resources Corp. (NASDAQ:PPTA).
Trilogy Metals Inc. (AMEX:TMQ), Seabridge Gold, Inc. (NYSE:SA), Equinox Gold Corp. (AMEX:EQX) and Iamgold Corp. (NYSE:IAG) round out the remainder of the firm’s miner holdings.
Paulson has been building his miners portfolio for many years and is well-positioned to benefit from the soaring price of gold.
Gold Rally: Gold has surged more than 30% in 2025, reaching $3,490 per ounce on Tuesday and setting a new record high price.
In fact, Monday's 3%-plus gold rally was the fifth time in the past 10 trading days that gold climbed at least 2% in a single day. The only periods that experienced a higher frequency of 2%-plus daily moves in the past 50 years were in January and June 1980, according to Bespoke Investment Group.
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