NOVAGOLD Announces Closing of Upsized Bought Deal for Gross Proceeds of US$310 Million

The most recent news (February 5, 2026) announces the closing of an upsized bought deal financing for gross proceeds of US$310 million. The company issued 31,020,000 common shares at a price of US$10.00 per share. This financing was significantly upsized from the original US$200 million announced on January 22, 2026, and the subsequently increased US$300 million target on January 23, 2026. The lead agents were BMO Capital Markets, RBC Capital Markets, and Scotiabank. Two cornerstone investors were noted. The use of proceeds is earmarked for three primary areas: Donlin Gold development activities (including the Bankable Feasibility Study), the settlement of the company's prepayment option on the promissory note with Barrick Mining Corporation, and general corporate purposes.

• Financial Independence: This capital raise is transformative because it provides the liquidity necessary to exercise the prepayment option on the US$158.9 million promissory note owed to Barrick. Settling this debt removes a significant financial overhang and interest burden (U.S. prime plus 2%).
• BFS Funding: The Bankable Feasibility Study (BFS) for Donlin Gold is expected to take 18 months. With a 2026 budget share of $78.8 million, this financing ensures NOVAGOLD is fully funded through the completion of the BFS without needing to return to the market in the immediate term.
• Shareholder Dilution: While positive for the balance sheet, the issuance of 31 million shares at $10.00 is highly dilutive. The $10.00 issuance price was a significant discount to the $14.46 price traded just before the announcement (Jan 22), explaining the sharp stock price drop from late January highs.
• Institutional Backing: The ability to upsize the deal from $200M to $310M in two weeks indicates strong institutional appetite for the project following the exit of Barrick as a partner and the entry of John Paulson as a 40% owner.

NOVAGOLD's flagship asset is a 60% interest in the Donlin Gold project in Alaska, USA. It is one of the world's largest undeveloped gold deposits, with 39 million ounces of gold in the Measured and Indicated categories at an average grade of 2.24 g/t. The project is a 60/40 joint venture with Paulson Advisers LLC. The project is located on private land owned by Native Corporations (Calista and TKC). Key permits are largely in hand, though a supplemental EIS for the tailings facility is currently being processed under the FAST-41 program.