Mining News: News Nuggets: Pebble owner to buy another cashed-up junior

Northern Dynasty Minerals Ltd. Oct. 8 said it entered into a binding letter agreement to acquire Mission Gold Ltd., a Vancouver, B. C.-based exploration company with C$9 million in cash and full ownership of the the Alto Parana titanium project in Paraguay. As a condition of closing the buyout, Alto Parana will be sold to a third party on terms acceptable to Northern Dynasty. To acquire full ownership of Mission Gold, Northern Dynasty will issue 27.8 million common shares, subject to adjustment in the event that Mission Gold's working capital is less than an agreed minimum amount. During the merger process, which will be by conventional statutory plan of arrangement, Mission Gold has agreed to make a subordinated secured credit facility of C$8.4 million available to Northern Dynasty for a period of six months. Northern Dynasty will appoint a nominee of Mission Gold to the Northern Dynasty board of directors on closing of the acquisition. The outstanding Mission Gold warrants will be exchanged for about 16.7 million warrants of Northern Dynasty having a weighted average exercise price of roughly C9.7 cents. The outstanding Mission Gold stock options will expire in accordance with their existing terms prior to closing.

- Shane Lasley