Gold M&A Surges: NovaGold Acquires Full Control of Donlin Gold

NovaGold Resources announced on Wednesday that it will acquire the 40% stake in Donlin Gold Holdings it does not already own from Paulson Advisers, creating a combined company valued at roughly $4.2 billion. The transaction, which will result in a new U.S.-domiciled entity named NovaGold Corp., is expected to be listed on the New York Stock Exchange. This move comes amid a broader boom in mining mergers and acquisitions, fueled by soaring gold prices and rising demand for metals tied to artificial intelligence and the energy transition.

A Record Year for Mining M&A

Mining M&A has reached unprecedented levels in 2025. According to S&P Global Market Intelligence, the second quarter saw $26.3 billion in deals, a 68% increase from the previous quarter and the second-highest quarterly total since the firm began tracking the metric in 2013. The surge reflects a strategic shift among mining companies, which are increasingly turning to acquisitions rather than greenfield projects to expand reserves and production capacity.

The NovaGold-Donlin Deal

NovaGold Resources, which previously held a 50% stake in Donlin Gold alongside Paulson Advisers, will now own 100% of the Alaskan gold project. The deal values Donlin at about $4.2 billion, a significant increase from the roughly $2 billion valuation it commanded just a year ago when the two parties first partnered. Paulson Advisers, which will retain a 40% economic interest in the new NovaGold Corp., described the transaction as a way to consolidate ownership of what the company calls the largest gold development project in the United States.

Project Details

Donlin Gold is located in Alaska and is considered one of the richest undeveloped gold deposits globally. The project has faced delays and cost overruns over the years, but NovaGold’s full ownership is expected to streamline development. The new entity plans to focus on advancing the project toward production, though significant capital and regulatory hurdles remain.

Gold Fever and the Race for Resources

The price of gold has been on a tear, currently trading about 20% higher than a year ago despite a recent pullback from its peak. This price surge, combined with growing demand from the artificial intelligence boom and the global energy transition, has made gold and other commodities like copper, lithium, and rare earths highly sought after. The Trump administration has also pushed aggressively to boost domestic gold production. Last week, it advanced plans to auction offshore areas near American Samoa for potential deep-sea mining, a move that could open new frontiers for mineral extraction.

Challenges for New Mines Fuel M&A

Starting a new mine from scratch is both costly and time-consuming, often taking a decade or more to move from discovery to production. Environmental and community opposition has also stalled many projects. The deep-sea mining plan, for example, has already drawn populist backlash. These obstacles make acquisitions an attractive alternative, allowing companies to quickly add reserves and production without the delays of permitting new sites. As a result, M&A activity is expected to remain robust as companies vie for control of the world's best gold assets.

Looking ahead, the NovaGold-Donlin deal is likely to set a precedent for further consolidation in the sector. With gold prices expected to stay elevated and demand for critical minerals rising, more producers may follow suit, snapping up junior miners and development-stage projects to meet future supply needs. The new NovaGold Corp., with its flagship Alaskan asset, will be a key player to watch in the evolving gold landscape.