NovaGold extended its winning streak to a third consecutive day on Wednesday, surging 10.30 percent to close at $6.21 apiece after expanding its gold portfolio with the full acquisition of the Donlin Gold project in Alaska.
In a statement on the same day, NovaGold Resources Inc. (NYSEAmerican:NG) said that it entered into a definitive agreement with Paulson Advisers LLC to acquire the latter’s entire 40 percent stake in the project through an all-share transaction valued at $4.2 billion.
NovaGold Resources Inc. (NYSEAmerican:NG) will effectively own 100 percent of Donlin Gold—whose projected annual 1.3-million-ounce gold production in its first decade and 1.1-million-ounce gold production over the 27-year mine life is expected to render it the largest gold development project in the US.
It currently holds approximately 40 million ounces of measured and indicated mineral resources, which represents more than twice the industry’s average grade.
For illustration purposes only. Photo by Tom Fisk on Pexels
NYSE Listing Move
As part of the transaction, Paulson Advisers and NovaGold Resources Inc. (NYSEAmerican:NG) agreed to form a new company called NovaGold Corporation, which will acquire the entire stake in the latter.
Current shareholders of NG are set to receive shares of the newly formed company on a 1:1 ratio. Paulson Advisers, on the other hand, will own 40 percent of the joint venture, effectively making it one of its largest shareholders.
The new NG to list on the New York Stock Exchange—an upgrade from its listing on NYSE American.
The new NG board of directors will be co-chaired by Thomas Kaplan and John Paulson and will expand the number of directors to 11 from 10 prior.
Upon the effective date, Paulson will have the right to nominate two directors as long as its equity ownership remains above 15 percent of the issued and outstanding shares.
Expedited Development of Donlin Mine
Commenting on the transaction, billionaire John Paulson—who owns Paulson Advisers— said that the consolidation of his company’s interest in Donlin into NovaGold enhances the mining site’s organizational structure and will facilitate, streamline and expedite the development.
“As the major shareholder of New NG, I share the conviction that Donlin Gold is a world class gold investment,” he said.
Hedge Fund Participation Jumps
Institutional investors participation in NovaGold Resources Inc. (NYSEAmerican:NG) notably strengthened in the first quarter of the year.
According to data from Insider Monkey, 25 hedge funds held positions in the company during the period, up from 20 in the fourth quarter of 2025.
Collectively, their positions totaled to $486.7 million, up 4.6 percent from $465 million quarter-on-quarter, signaling growing institutional confidence in its growth prospects.
While we acknowledge the risk and potential of NG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NG and that has 10,000% upside potential, check out our report about the cheapest AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center