Canada’s Barrick Gold (GOLD) is exiting an Alaska mine project by selling its 50% stake to billionaire hedge fund manager John Paulson and Novagold Resources (NG) for $1 billion U.S.
The sale involves the Donlin Gold Mine that is situated in Alaska.
Under terms of the deal, Novagold will pay $200 million U.S., while Paulson is paying $800 million U.S. to take control of the gold mining project.
Paulson, the American hedge-fund manager behind Paulson & Co., is one of the largest investors in Canada’s Novagold Resources.
Barrick Gold and Novagold opened a joint venture in 2007 to develop the Donlin Mine.
Going forward, John Paulson will be a full and equal partner in the Donlin project alongside Novagold. He has run New York-based Paulson & Co. since 1994.
The sale is the latest effort by Barrick Gold to offload assets and dispense with smaller investments while gold’s price is at a record high above $3,400 U.S. an ounce.
Barrick Gold last year began the process of selling its Tongon gold mine in Ivory Coast, West Africa, although it has not found a buyer for the asset.
The stock of Barrick Gold has risen 28% this year, mirroring the rise in gold’s price, and currently trades at $20.45 U.S. per share.
