Business
Northern Dynasty Secures Innovative Royalty Agreement for Proceeds of Up to $60 Million on Non-Core Metals
This news release constitutes a "designated news release" for the purposes of the Company's ...
About this update from Northern Dynasty Minerals Ltd.
[{"type":"text","content":"Northern Dynasty Secures Innovative Royalty Agreement for Proceeds of Up to $60 Million on Non-Core MetalsThis news release constitutes a \"designated news release\" for the purposes of the Company's prospectus supplement dated June 21, 2021, to its short form base shelf prospectus dated July 2, 2020.VANCOUVER, BC / ACCESSWIRE / July 27, 2022 / Northern Dynasty Minerals Ltd. (TSX:NDM)(NYSE American:NAK) (\"Northern Dynasty\" or the \"Company\" or \"NDM\") announces that it has entered into an agreement (the \"Agreement\") with an investor (the \"Royalty Holder\") to receive up to $60 million over the next two years, in return for the right to receive a portion of the future gold and silver production from the Pebble Project for the life of the mine. The Company received an initial payment of $12 million from the Royalty Holder concurrently with execution of the Agreement. All currency figures are U.S. dollars.\"It has become clear to us that to develop a world-class mineral deposit like Pebble requires time, patience and sufficient liquidity to successfully navigate the established legal process and continue ongoing efforts to work with the people in the region,\" said Ron Thiessen, Northern Dynasty President and CEO. \"This financing, when completed, also gives us the financial wherewithal to keep fighting against what we consider to be unfounded interference by U.S. Federal Government agencies in an otherwise well-established, legal permitting process, as well as to deal with challenges from well-funded parties from outside the area that lack scientific or other factual studies to support their opposition.\"Per the terms of the Agreement, the Royalty Holder made the initial payment of $12 million in exchange for the right to receive 2% of the payable gold production and 6% of the payable silver production from the Pebble Project, in each case after accounting for a notional payment by the Royalty Holder of $1,500 per ounce of gold and $10 per ounce of silver, respectively, for the life of the mine. If, in the future, spot prices exceed $4,000 per ounce of gold or $50 per ounce of silver, then the Company will share in 20% of the excess price for either metal. Additionally, the Company will retain a portion of the metal produced for recovery rates in excess of 60% for gold and 65% for silver, and so is incentivized to continual...