Note 5 - Investment in Donlin Gold

9 Months Ended

Aug. 31, 2025

Donlin Gold [Member]

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 5 – INVESTMENT IN DONLIN GOLD

On June 3, 2025, the Company closed on a membership interest purchase agreement among Paulson, Barrick Gold U.S. Inc., Barrick (together, the “Barrick Parties”), Donlin Gold Holdings LLC (a subsidiary of Paulson), and NovaGold Resources Alaska, Inc. ("NGRA”), a subsidiary of the Company, whereby the Barrick Parties sold their 50% interest in Donlin Gold to Donlin Gold Holdings LLC and NovaGold Resources Alaska, Inc., for $1,000,000 (the “Donlin Gold Transaction”). In accordance with the agreement, NovaGold Resources Alaska, Inc. acquired an additional 10% interest in Donlin Gold for $200,000 and Donlin Gold Holdings LLC acquired a 40% interest in Donlin Gold for $800,000.

In addition to the consideration paid for the additional 10% interest, NovaGold Resources Alaska, Inc. paid an additional working capital adjustment of $980 to the Barrick Parties and incurred transaction costs of $9,070. The consideration, working capital adjustment and transaction costs were capitalized and included in the Company’s Investment in Donlin Gold.

The Donlin Gold project is owned and operated by Donlin Gold, a limited liability company in which, effective June 3, 2025, wholly-owned subsidiaries of NOVAGOLD and Donlin Gold Holdings LLC owned a 60% and 40% interest, respectively. While the Company has a 60% economic interest in Donlin Gold following the Donlin Gold Transaction, the Company and Paulson have equal governance rights. Donlin Gold has a board of four representatives, with two representatives selected by Paulson and two representatives selected by the Company. All significant decisions related to Donlin Gold require the approval of at least a majority of the Donlin Gold board.

Changes in the Company’s Investment in Donlin Gold are summarized as follows:

		Three months ended August 31,								Nine months ended August 31,
		2025				2024				2025				2024
Balance – beginning of period		$	4,248			$	3,454			$	2,597			$	3,071
Acquisition of additional 10% interest in Donlin Gold			210,050				—				210,050				—
Share of losses:
Mineral property expenditures			(7,301	)			(2,675	)			(15,806	)			(9,327	)
Depreciation			(137	)			(128	)			(374	)			(408	)
Accretion			(12	)			(11	)			(32	)			(30	)
			202,600				(2,814	)			193,838				(9,765	)
Funding			8,100				2,864				18,513				10,198
Balance – end of period		$	214,948			$	3,504			$	214,948			$	3,504

The following amounts represent the Company’s 60% share of the assets and liabilities of Donlin Gold following the Donlin Gold Transaction on June 3, 2025. Subsequent to the completion of the Donlin Gold Transaction, the carrying value of the Company’s investment in Donlin Gold exceeded the net assets of Donlin Gold due to the capitalization of the consideration paid to acquire an additional 10% interest of Donlin Gold and transaction costs of $9,070. Prior to June 3, 2025, the Company held a 50% economic interest in Donlin Gold and the carrying value of the Company’s investment in Donlin Gold was less than the net assets of Donlin Gold as Donlin Gold capitalized Barrick’s initial contribution of the Donlin Gold property at inception as Non-current assets: Mineral property with a carrying value of $64,000 while the Company’s initial contribution to Donlin Gold consisted of historical exploration which NOVAGOLD previously expensed.

		As of August 31, 2025				As of November 30, 2024
Current assets: Cash, prepaid expenses, and other receivables		$	8,672			$	3,745
Non-current assets: Right-of-use assets, property and equipment			1,058				965
Non-current assets: Mineral property			39,185				32,654
Current liabilities: Accounts payable, accrued liabilities and lease obligations			(3,747	)			(1,947	)
Non-current liabilities: Reclamation and lease obligations			(1,020	)			(820	)
Net assets		$	44,148			$	34,597