Baker Botts advised Electrum Strategic Resources L.P., NOVAGOLD Resources Inc.’s largest shareholder, on NOVAGOLD’s agreement to acquire full ownership of the Donlin Gold project in Alaska.

The transaction will create a U.S.-domiciled gold developer with an equity value of approximately $4.2 billion and consolidate ownership of a project expected to become the largest gold mine in the United States.

NOVAGOLD currently holds a 60% interest in Donlin Gold. Under the agreement, Paulson Advisers LLC will exchange its 40% interest for shares in a newly formed company, giving NOVAGOLD sole ownership of the project.

Donlin Gold holds approximately 40 million ounces of gold in measured and indicated mineral resources and is expected to produce more than one million ounces annually across an estimated 27-year mine life.

Electrum, NOVAGOLD’s directors and certain senior officers, together with Paulson, have agreed to support the transaction with shares representing approximately 28% of NOVAGOLD’s outstanding common stock.

The representation demonstrates Baker Botts’ ability to coordinate corporate, tax, antitrust and litigation advice on transformational transactions involving strategically significant natural resources, public markets and multiple jurisdictions.

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