Note 5 - Investment in Donlin Gold

3 Months Ended

Feb. 28, 2022

Donlin Gold [Member]

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 requires 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 February 28,
	2022			2021
Balance – beginning of period	$	3,576		$	2,614
Share of losses
Mineral property expenditures		(3,944	)		(1,901	)
Depreciation		(85	)		(67	)
Accretion		(11	)		—
		(4,040	)		(1,968	)
Funding		5,936			2,946
Balance – end of period	$	5,472		$	3,592

The following amounts represent the Company’s 50% share of the assets and liabilities of Donlin Gold LLC. Donlin Gold LLC 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 LLC than that of the Company.

	As of February 28, 2022			As of November 30, 2021
Current assets: Cash, prepaid expenses, and other receivables	$	6,795		$	3,815
Non-current assets: Right-of-use assets, property and equipment		1,355			1,417
Non-current assets: Mineral property		32,615			32,615
Current liabilities: Accounts payable, accrued liabilities and lease obligations		(2,608	)		(1,584	)
Non-current liabilities: Reclamation and lease obligations		(685	)		(687	)
Net assets	$	37,472		$	35,576