NOVAGOLD RESOURCES SOARS 8.52% IN 3-DAY RALLY DRIVEN BY DONLIN GOLD ACQUISITION, CAPITAL RAISE

NOVAGOLD RESOURCES (NG) surged 1.46% on Monday, marking its third consecutive day of gains and a cumulative 8.52% rise over the period. The stock reached a peak not seen since September 2025, with an intraday jump of 3.72%, reflecting renewed investor optimism driven by strategic advancements and operational progress.

The acquisition of a 60% stake in the Donlin Gold project, finalized in June 2025, remains the cornerstone of the company’s momentum. By doubling its ownership in the high-grade Alaskan deposit, NOVAGOLD has secured greater control over the project’s development, which holds 39 million ounces of gold at a grade exceeding industry averages. This move has bolstered confidence in the project’s scalability and long-term viability, particularly given its location in a politically stable mining jurisdiction.

Financially, the company strengthened its balance sheet through a $234 million capital raise in May 2025, enabling the acquisition and supporting ongoing operations. Despite a post-transaction cash balance reduction to $136 million, the liquidity cushion positions NOVAGOLD to advance the Donlin Gold project through its 15,000-meter drill program and feasibility study updates. The drilling efforts, now focusing on resource conversion, aim to refine the project’s valuation and reduce technical risks.

Analyst sentiment has further fueled the stock’s ascent. Recent upgrades from Royal Bank of Canada and Citigroup, coupled with a revised price target of C$10.00 from National Bankshares, highlight confidence in the company’s strategic repositioning. Regulatory progress, including a federal court decision that preserved key permits while mandating a supplemental environmental analysis, has also mitigated major setbacks, allowing technical work to continue uninterrupted.

Collaboration with Paulson Advisers and John Paulson’s involvement adds credibility and financial backing to the project, aligning with NOVAGOLD’s goal of attracting high-quality partners. Meanwhile, community engagement initiatives, including support for local programs and environmental stewardship efforts, have enhanced the project’s social license to operate, reducing potential opposition from stakeholders.

Looking ahead, the company’s focus on completing an updated feasibility study by year-end will be pivotal. A successful outcome could accelerate permitting and construction decisions, unlocking significant value for shareholders. With analysts emphasizing the project’s potential to produce 1.1 million ounces annually over 27 years, NOVAGOLD’s trajectory as a major gold producer in a Tier One jurisdiction appears increasingly viable, supported by its disciplined financial management and strategic clarity.