Novagold Stock (NG): Ups Stake in Donlin Gold—But at What Cost?

By Patricia Miller

Oct 02, 2025

3 min read

Novagold just spent $1B to boost its Donlin Gold stake to 60%, but with rising losses and heavy funding needs, can this big bet pay off?

#Novagold Latest

Novagold has recently filed its Q3 2025 results, offering insights into its ongoing operations and notable acquisitions. The company has made significant progress at its flagship Donlin Gold project, now owning 60% following a $1B transaction in which it acquired an additional 10% from Barrick Mining; the remaining 40% was acquired by funds managed by Paulson & Co. To finance this transaction and other corporate needs, it raised approximately $260M through public and private offerings.

Although the company reported a net loss of $15.6M for Q3, it still maintains a healthy cash and term deposits position of $125M. Additionally, the firm has issued a Request for Proposal (RFP) for a Bankable Feasibility Study (BFS), with contract awards anticipated before the year concludes. Drilling activities confirmed strong gold mineralization, and advancements were made in environmental and community initiatives, reflecting ongoing investor momentum amidst the losses.

#What Investors Need to Know About Novagold

  • Novagold owns 60% of Donlin Gold, though governance is shared equally with Paulson under a new LLC agreement.

  • The company reported a Q3 2025 net loss of $15.6M, translating to $0.04 per share. This loss includes a significant non-cash expense related to warrants issued as part of the backstop financing agreement.

  • It raised approximately $260M through offerings to fund acquisitions and corporate requirements.

  • The 2025 drill program included ~18,454 meters of drilling, with notable intercepts such as 23.49 g/t gold over 8.5 meters.

  • A BFS RFP has been issued, demonstrating the company's commitment to moving projects forward.

#Novagold At A Glance

Novagold Resources Inc. is a mineral exploration and development company focused primarily on gold. The company’s flagship asset is the Donlin Gold project, located in Alaska. Novagold aims to develop this significant gold resource into a mine while maintaining high environmental and social governance standards.

#Competitive Landscape

The precious metals industry is competitive, with Novagold operating alongside companies like Barrick Gold, Newmont Corporation, and Kinross Gold. These firms also focus on large-scale mining projects and gold exploration, which competes for investor attention and resources.

#Near-Term Catalysts and Risks

In the near term, Novagold's success hinges on the completion of the BFS and the potential for securing favorable project financing. Investors should consider both the upside of advancing one of the world's largest gold projects and the risks associated with fluctuating gold prices, regulatory approvals, and ongoing capital expenditures. These factors could impact timelines and financial projections.

#Trading Novagold Stock

When considering trading Novagold stock, potential investors might focus on the balance between risk and reward. With the company's involvement in a substantial gold project, market sentiment may hinge on developments regarding the BFS and drilling results. Monitoring gold prices and overall market conditions will also be crucial in framing trading decisions. Investors should evaluate their risk tolerance and investment horizons accordingly.

#FAQ

Why is the Donlin Gold project important to Novagold?

Donlin Gold is Novagold’s primary asset and key to its future value. As one of the world’s largest undeveloped gold deposits, its development could significantly boost the company’s long-term prospects.

How is Novagold funding its operations?

The company is primarily funded through equity offerings and strategic partnerships. It also holds a $162.6M promissory note payable to Barrick, to be repaid through future distributions or asset sales.

What risks should investors consider?

Key risks include permitting and regulatory delays, volatile gold prices, and the capital-intensive nature of large-scale mining projects, all of which could affect project timelines and returns.

Could This Be the Next Chapter in Canada’s Gold Revival?

Just as gold has surged to record highs in 2025, a new gold project is taking shape in central Newfoundland, right next door to the Valentine Mine, which is set to become Canada’s largest gold mine.

With permits secured and drilling underway, this early-stage explorer is targeting structures in the same mineral-rich corridor. While it's early days, the location offers geological context, infrastructure advantages, and recent drill results that are drawing interest.

As gold continues to attract investor attention, some are watching to see how nearby exploration stories unfold.

Curious about this developing opportunity? Explore the story.

Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.