Note 5 - Investment in Donlin Gold

6 Months Ended

May 31, 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 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,
	2022			2021			2022			2021
Balance – beginning of period	$	5,472		$	3,592		$	3,576		$	2,614
Share of losses:
Mineral property expenditures		(8,343	)		(4,129	)		(12,287	)		(6,030	)
Depreciation		(86	)		(69	)		(171	)		(136	)
Accretion		(12	)		—			(23	)		—
		(8,441	)		(4,198	)		(12,481	)		(6,166	)
Funding		10,551			5,178			16,487			8,124
Balance – end of period	$	7,582		$	4,572		$	7,582		$	4,572

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,
	2022			2021
Current assets: Cash, prepaid expenses and other receivables	$	9,509		$	3,815
Non-current assets: Right-of-use assets, property and equipment		1,430			1,417
Non-current assets: Mineral property		32,615			32,615
Current liabilities: Accounts payable, accrued liabilities and lease obligations		(3,299	)		(1,584	)
Non-current liabilities: Reclamation and lease obligations		(673	)		(687	)
Net assets	$	39,582		$	35,576