Mining News: News Nuggets: Northern Dynasty raises C$10M for Pebble

Northern Dynasty Minerals Ltd. Aug. 31 reported the closing of a C$10.2 million private placement that involved the issuance of 25,624,408 special warrants exercisable into the company’s listed common shares at a price of C39.9 cents per warrant. The warrants will convert on exercise into common shares of Northern Dynasty on a one-for-one basis. Following the completion of the private placement, Northern Dynasty said it has reached a definitive agreement with Cannon Point Resources Ltd. to buy all of that company’s outstanding shares. Under a preliminary agreement entered in August, Northern Dynasty would issue about 12.9 million common shares to buy Cannon Point. At the end of June, Cannon Point had C$4.7 million in cash and cash-equivalents, which is the most significant asset held by the company. During the merger process, Cannon Point has agreed to make a secured credit facility for C$4.25 million available to Northern Dynasty. The amounts borrowed would be repayable after 30 days if Northern Dynasty breaches the deal and 180 days from termination if the merger is not completed for any other reason. One of the conditions of the agreement was that at C$10 million of the warrants being sold during the private placement. The money raised will be used for working capital and to advance the Pebble copper-gold-molybdenum project in Southwest Alaska by implementing Northern Dynasty’s legal and environmental strategies.

- Shane Lasley