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Note 5 - Investment in Donlin Gold
 6 Months Ended
May 31, 2023
Notes to Financial Statements  
Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 5 – INVESTMENT IN DONLIN GOLD

 

The Donlin Gold project is owned and operated by Donlin Gold, a limited liability company in which wholly-owned subsidiaries of NOVAGOLD and Barrick each own a 50% interest. Donlin Gold has a board of four representatives, with two representatives selected by Barrick and two representatives selected by the Company. All significant decisions related to the Donlin Gold project 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 May 31,

    

Six months ended May 31,

  
   

2023

    

2022

    

2023

    

2022

  

Balance – beginning of period

   $ 5,117     $ 5,472     $ 3,848     $ 3,576  
Share of losses:                                

Mineral property expenditures

     (7,391 )     (8,343 )     (11,715 )     (12,287 )

Depreciation

     (144 )     (86 )     (283 )     (171 )

Accretion

     (8 )     (12 )     (20 )     (23 )
      (7,543 )     (8,441 )     (12,018 )     (12,481 )

Funding

     7,028       10,551       12,772       16,487  

Balance – end of period

   $ 4,602     $ 7,582     $ 4,602     $ 7,582  

 

NOVAGOLD RESOURCES INC.

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited, US dollars in thousands except per share amounts)

 

The following amounts represent the Company’s 50% share of the assets and liabilities of Donlin Gold. Donlin Gold capitalized the initial contribution of the Donlin Gold property as Non-current assets: Mineral property with a carrying value of $64,000, resulting in a higher carrying value of the mineral property for Donlin Gold than that of the Company.

 

   

As of

May 31,

    

As of

November 30,

  
   

2023

    

2022

  

Current assets: Cash, prepaid expenses and other receivables

   $ 5,929     $ 4,220  

Non-current assets: Right-of-use assets, property and equipment

     1,745       2,036  

Non-current assets: Mineral property

     32,615       32,615  

Current liabilities: Accounts payable, accrued liabilities and lease obligations

     (2,966 )     (2,322 )

Non-current liabilities: Reclamation and lease obligations

     (721 )     (701 )

Net assets

   $ 36,602     $ 35,848