Why NovaGold Resources Inc. (NG) Went Up On Tuesday

We recently published a list of Bitcoin Miners Dominate Tuesday’s 10 Best-Performing Stocks. In this article, we are going to take a look at where NovaGold Resources Inc. (NYSEAMERICAN:NG) stands against other Tuesday’s best-performing stocks.

The stock market bounced back on Tuesday, erasing losses in the previous day, as investors snapped up shares on news that the US-China trade tensions could possibly subside.

The Dow Jones rallied by 2.66 percent, the S&P 500 rose by 2.51 percent, and the Nasdaq surged by 2.71 percent.

On Tuesday, news reports said that US Treasury Secretary Scott Bessent believed there would be a de-escalation between the US and China, describing future negotiations as a slog that has not started yet. The news buoyed trading in several financial markets, including cryptocurrency, with Bitcoin jumping 5 percent to trade above the $91,000 level.

The rally spilled over into 10 companies, predominantly Bitcoin miners. In this article, we have listed the 10 top-performing firms on Tuesday and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with more than $1 billion in market capitalization and $5 million in trading volume.

Why NovaGold Resources Inc. (NG) Went Up On Tuesday

An aerial view of a gold mining claim in the Kuskokwim region of southwestern Alaska.

NovaGold Resources Inc. (NYSEAMERICAN:NG)

NovaGold Resources extended its winning streak for a second straight day on Tuesday, jumping 39.87 percent to close at $4.35 apiece following news that it would acquire a 50-percent stake in Donlin Gold LLC for $1 billion.

NG said in a statement that it partnered with Paulson Advisers LLC for the acquisition of Barrick’s 50-percent stake in Donlin, which owns and develops the Donlin Gold project in Alaska.

Of the total, NG will acquire the 10-percent share, increasing its total ownership in the company to 60 percent from 50 percent previously.

Paulson, on the other hand, will take the remaining 40 percent interest at a price of $800 million.

Following the closing of the transaction, the two companies target to immediately commence the various workstreams to update the Feasibility Study, including assembling a specially dedicated team to take over efforts as well as shift the program’s focus to the conversion and expansion of Donlin Gold’s reserves and resources.

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This article is originally published at Insider Monkey.