Mining News: News Nuggets: Northern Dynasty aims to raise funds to pay for getting Pebble beyond EPA, in permitting

Northern Dynasty Minerals Ltd. May 26 said it plans to raise up to US$17 million to fund its multi-dimensional strategy to prevent the U.S. Environment Protection Agency’s proposed pre-emptive regulatory action that would critically restrict development of the Pebble copper-gold-molybdenum project in Southwest Alaska. The offering, to be conducted by Global Securities Corp. and Industrial Alliance Securities Inc., will consist of 31,111,111 units at US45 cents apiece. Each unit will consist of one common share and one purchase warrant that is exercisable into one common share at a price of US65 cents for five years from the closing of the offering. An overallotment of 4,666,667 units has been offered to the agents. Additionally, Northern Dynasty intends to offer an additional 2,222,222 units directly to United States “accredited investors” for additional proceeds of up to US$1 million. The two offerings are expected to raise between US$15 million and US$17.1 million, depending on how much of the overallotment is exercised. In addition to addressing EPA’s pre-emptive action under the U.S. Clean Water Act, the company said the funds will be used to prepare the Pebble Project for the start of permitting under the U.S. National Environmental Policy Act; keep the Pebble project in good standing; advance a potential partner(s) transaction; and for working capital and general corporate purposes. Northern Dynasty also announced the appointment of Christian Milau and David Laing as directors. Milau is the former CEO of True Gold Mining Inc. and Laing served as the chief operating officer of that company. In April, True Gold was acquired by Endeavor Mining Corp., an intermediate gold company with five West African mines, including the Karma project developed by True Gold. Prior to joining True Gold, Milau served as executive vice president and chief financial officer of Endeavor. He also has held senior positions at New Gold Inc. and in investment banking at BNP Paribas in London.

-Shane Lasley