Billionaire investor John Paulson is teaming up with Canada’s NovaGold to purchase a stake in an Alaskan gold mine.

Canada's Barrick Gold said on Tuesday it will exit the Donlin gold Project in Alaska by selling its 50% stake to billionaire John Paulson and NovaGold Resources for up to $1.1 billion. The Donlin Gold project is a proposed mine which holds roughly 39 million ounces of gold.

Billionaire John Paulson has been building his miners portfolio for many years and is well-positioned to benefit from the soaring price of gold.