Novagold increases bought deal to $300-million (U.S.)

The most recent news release, dated January 23, 2026, announces that NOVAGOLD has increased the size of its previously announced bought deal financing from US$200 million to US$300 million. The offering consists of 30 million common shares at US$10.00 per share. The agents are BMO Capital Markets, RBC Capital Markets, and Scotiabank. A "leading European institution" is noted as a key investor. The proceeds are earmarked for: 1) expenditures associated with the Donlin gold project, 2) settlement of the company's prepayment option on the promissory note with Barrick Mining Corp., and 3) general corporate purposes.

The news is Material - Positive. Raising US$300 million is significant, representing approximately 7.7% dilution at the offering price relative to the company's current ~407 million shares outstanding. The material positive aspects are: - Debt Resolution: The primary use of proceeds to settle the expensive Barrick promissory note (carrying interest at U.S. prime + 2%) is a critical de-risking event. As of August 31, 2025, this note stood at $162.6 million. Removing this liability strengthens the balance sheet and eliminates a major financial overhang. - Funding for Critical Path: The capital ensures NOVAGOLD is fully funded to advance the Donlin Gold Bankable Feasibility Study (BFS), a key value-unlocking milestone. The company's 60% share of project funding and corporate G&A requires substantial cash. - Investor Confidence: Upsizing the deal from $200M to $300M and securing a "leading European institution" as an investor signals strong institutional demand and confidence in the post-Paulson transaction story. Offsetting Factor: The offering price of US$10.00 represents a significant discount (~31%) to the recent closing price of $14.46, which is dilutive and may create near-term technical resistance. However, the strategic necessity of the capital for debt retirement and project advancement outweighs this negative.

• Company: NOVAGOLD Resources Inc. is a development-stage mining company focused solely on advancing its majority-owned Donlin Gold project in Alaska, USA.
• Flagship Project - Donlin Gold:
  • Ownership: NOVAGOLD 60%, Paulson (via Donlin Gold Holdings) 40%. Governance is 50/50 between NOVAGOLD and Paulson.
  • Resource/Reserve: One of the world's largest undeveloped open-pit gold deposits. Measured & Indicated Resources of ~39 million ounces (inclusive of reserves) at a high grade of 2.24 g/t Au. Proven & Probable Reserves of ~33.8 million ounces at 2.09 g/t Au.
  • Projection: Estimated to produce over 1 million ounces of gold per year for 27 years, with first 5 years averaging ~1.5 million ounces annually.
  • Stage: Permitted at the federal level. Advancing remaining state permits (Dam Safety Certification) and progressing toward a Bankable Feasibility Study (BFS), with a potential construction decision in 2027 and production around 2031.
  • Jurisdiction: Located on private land owned by Alaska Native Corporations (Calista Corp. and The Kuskokwim Corp.) in the mining-friendly state of Alaska.
  • Economics: Life-of-Mine all-in sustaining costs projected at ~$635/oz, positioning it in the lower half of the industry cost curve.