NovaGold Resources Inc. has increased the size of its bought‑deal private placement from $200 million to $300 million, with shares priced at $10.00 each and an expected closing date of February 5, 2026. The gross proceeds of approximately $300 million will be used to fund activities for the Donlin Gold project, settle a prepayment option on a promissory note with Barrick Mining Corporation, and support general corporate purposes.
The company’s promissory note with Barrick carries a $100 million prepayment option that was retained after the June 3, 2025 transaction that raised NovaGold’s stake in Donlin Gold to 60%. The note’s outstanding balance was $158.9 million as of that date, and exercising the prepayment option will reduce the company’s debt exposure and improve leverage ratios as it moves toward a bankable feasibility study and eventual construction of the project.
NovaGold’s financial performance in the most recent quarter reflects its development‑stage status. In Q4 2025 the company reported a net loss of $15.6 million, up from $10.9 million in Q4 2024, and a full‑year 2025 loss of $94.7 million. The loss is driven by higher site activity at Donlin Gold and increased general and administrative expenses, while a $39.6 million non‑cash charge related to warrants contributed to the full‑year loss.
By raising $300 million in equity, NovaGold reduces its reliance on debt financing, which is critical for a company that has yet to generate production revenue. The capital injection strengthens the balance sheet, lowers interest burden, and provides the liquidity needed to advance the Donlin Gold project through the next phases of permitting, environmental review, and the bankable feasibility study. Management’s decision to fund the prepayment option also signals confidence in the project’s long‑term value and a commitment to maintaining a healthy capital structure.
The equity raise is viewed by investors as a de‑risking move that positions NovaGold to secure the remaining financing needed for the $7.4 billion development of Donlin Gold. With a stronger balance sheet and reduced debt, the company is better positioned to negotiate future financing terms and to progress toward a construction decision, thereby advancing its core strategic objective of bringing the project to production.
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