Northern Dynasty: Second Tranche of Amended Royalty Agreement Completed with Receipt of US $10 Million
Northern Dynasty Minerals (TSX:NDM)(NYSE American:NAK) has received the remaining $10 million royalty payment under the second tranche of its amended Royalty Agreement. This completes the $12 million second tranche, with the first $2 million received upon execution of the Amendment in November 2023. The completion extends the balance of the Royalty Agreement until July 26, 2025.
The Royalty Holder now has the right to receive approximately 2% of payable gold production and 6% of payable silver production from the Pebble Project. The remaining three tranches of $12 million each are still available, potentially providing an additional $36 million investment. The total purchase price remains at $60 million, with maximum royalty rates of 10% for gold and 30% for silver production.
Northern Dynasty Minerals (TSX:NDM)(NYSE American:NAK) ha ricevuto il restante pagamento di $10 milioni relativi ai diritti minerari nell'ambito della seconda tranche del suo Accordo di Regalìe modificato. Questo completa la seconda tranche di $12 milioni, con i primi $2 milioni ricevuti al momento della firma dell'emendamento nel novembre 2023. Il completamento estende la scadenza dell'Accordo di Regalìe fino al 26 luglio 2025.
Il detentore della regalìa ha ora il diritto di ricevere circa il 2% della produzione di oro pagabile e il 6% della produzione di argento pagabile dal Pebble Project. Le restanti tre tranche da $12 milioni ciascuna sono ancora disponibili, potenzialmente fornendo un ulteriore investimento di $36 milioni. Il prezzo totale di acquisto rimane fissato a $60 milioni, con tassi massimi di regalìa del 10% per la produzione di oro e del 30% per la produzione di argento.
Northern Dynasty Minerals (TSX:NDM)(NYSE American:NAK) ha recibido el pago restante de $10 millones correspondiente a la segunda parte de su Acuerdo de Regalías modificado. Esto completa la segunda parte de $12 millones, con los primeros $2 millones recibidos al firmar la Enmienda en noviembre de 2023. La finalización extiende el Acuerdo de Regalías hasta el 26 de julio de 2025.
El titular de la regalía ahora tiene derecho a recibir aproximadamente el 2% de la producción de oro pagadera y el 6% de la producción de plata pagadera del Pebble Project. Las tres tramos restantes de $12 millones cada una todavía están disponibles, lo que potencialmente proporciona una inversión adicional de $36 millones. El precio total de compra se mantiene en $60 millones, con tasas máximas de regalía del 10% para la producción de oro y del 30% para la producción de plata.
노던 다이너스티 미네랄스 (TSX:NDM)(NYSE American:NAK)는 수정된 로열티 협정의 두 번째 분할에서 남은 1천만 달러의 로열티 지급을 받았습니다. 이는 1억 2천만 달러의 두 번째 분할을 완료하며, 첫 번째 2백만 달러는 2023년 11월에 수정안에 서명할 때 수령하였습니다. 이번 완공으로 로열티 협정의 잔여 기간이 2025년 7월 26일까지 연장됩니다.
로열티 보유자는 이제 펩블 프로젝트에서 지불 가능한 금 생산의 약 2%와 지불 가능한 은 생산의 6%를 받을 권리가 있습니다. 여전히 제공 가능한 1억 2천만 달러의 나머지 세 번의 분할이 있으며, 이는 추가적으로 3천6백만 달러의 투자를 제공할 수 있습니다. 총 구매 가격은 6천만 달러로 유지되며, 금 생산에 대한 최대 로열티율은 10%, 은 생산에 대한 최대 로열티율은 30%입니다.
Northern Dynasty Minerals (TSX:NDM)(NYSE American:NAK) a reçu le paiement de 10 millions de dollars restants au titre de la deuxième tranche de son Accord de Royalties modifié. Cela complète la deuxième tranche de 12 millions de dollars, les premiers 2 millions de dollars ayant été reçus lors de la signature de l'Amendement en novembre 2023. L'achèvement prolonge l'Accord de Royalties jusqu'au 26 juillet 2025.
Le titulaire de la redevance a désormais le droit de recevoir environ 2 % de la production d'or payable et 6 % de la production d'argent payable du Pebble Project. Les trois tranches restantes de 12 millions de dollars chacune sont encore disponibles, ce qui pourrait fournir un investissement supplémentaire de 36 millions de dollars. Le prix d'achat total reste fixé à 60 millions de dollars, avec des taux de redevance maximum de 10 % pour la production d'or et de 30 % pour la production d'argent.
Northern Dynasty Minerals (TSX:NDM)(NYSE American:NAK) hat die verbleibende Zahlung von 10 Millionen Dollar im Rahmen der zweiten Tranche seines geänderten Royalty-Vereinbarung erhalten. Dies schließt die zweite Tranche von 12 Millionen Dollar ab, wobei die ersten 2 Millionen Dollar bei der Unterzeichnung der Änderungsvereinbarung im November 2023 empfangen wurden. Der Abschluss verlängert die Laufzeit des Royalty-Vereinbarung bis zum 26. Juli 2025.
Der Royalty-Inhaber hat jetzt das Recht, etwa 2% der auszahlbaren Goldproduktion und 6% der auszahlbaren Silberproduktion aus dem Pebble Project zu erhalten. Die verbleibenden drei Tranchen von jeweils 12 Millionen Dollar stehen weiterhin zur Verfügung, was potenziell zusätzliche Investitionen von 36 Millionen Dollar ermöglicht. Der Gesamtpreis bleibt bei 60 Millionen Dollar, mit maximalen Royalty-Sätzen von 10% für Gold und 30% für Silberproduktion.
- Received $10 million royalty payment, completing the $12 million second tranche
- Extended balance of Royalty Agreement until July 26, 2025
- Potential for additional $36 million investment from remaining three tranches
- Increased royalty obligations on future gold and silver production
Insights
The completion of the second tranche of the amended royalty agreement is a significant financial development for Northern Dynasty Minerals. This
The structure of the royalty agreement is noteworthy. The Royalty Holder now has rights to
The extension of the agreement's completion date to July 2025 provides Northern Dynasty with additional flexibility. However, investors should note that the remaining
From a financial perspective, this agreement structure is a double-edged sword. While it provides much-needed capital without diluting shareholders, it also reduces potential future revenue streams. The success of this strategy hinges on the Pebble Project's eventual development and production, which faces significant regulatory and environmental hurdles.
The completion of this royalty agreement tranche underscores the strategic importance of the Pebble Project in the global metals market. As one of the world's largest undeveloped copper-gold-molybdenum-silver deposits, Pebble's potential impact on supply cannot be overstated, particularly given the increasing demand for these metals in green technologies and infrastructure development.
The royalty structure, with its sliding scale based on metal prices and recovery rates, is an innovative approach in the mining industry. It aligns the interests of Northern Dynasty and the Royalty Holder, incentivizing operational excellence and potentially benefiting both parties in high-price environments. The
However, the project's location in Alaska's Bristol Bay region presents significant environmental and regulatory challenges. The mention of safeguarding the environment and regional fisheries in the CEO's statement acknowledges these concerns but doesn't fully address the complex permitting landscape the project faces.
The extended timeline for the agreement's completion reflects the long development cycles typical in large-scale mining projects. It also provides a buffer for Northern Dynasty to navigate the regulatory process and potentially improve market conditions before further capital commitments are required.
The Pebble Project's progress, as indicated by this financial transaction, raises important environmental considerations. The CEO's reference to the USACE's Final Environmental Impact Statement and Remand Order is significant, but it's important to note that these documents have been subjects of intense debate and legal challenges.
The project's location in Bristol Bay, home to the world's largest sockeye salmon fishery, places it at the center of a complex environmental and economic trade-off. While the company asserts that the environment and fisheries can be safeguarded, many environmental groups and local communities remain skeptical.
The royalty agreement's structure, particularly the provisions for increased company benefits at higher recovery rates, could incentivize more intensive mining practices. This could potentially conflict with environmental protection goals, depending on the methods used to achieve higher recovery rates.
Investors should be aware that despite the financial progress indicated by this royalty payment, the project still faces significant regulatory hurdles. The Biden administration's environmental policies and the ongoing legal challenges could significantly impact the project's timeline and feasibility.
The extended completion date for the royalty agreement to July 2025 suggests that all parties involved anticipate a lengthy process ahead. This timeline aligns with the complex nature of permitting and developing large-scale mining projects in environmentally sensitive areas.
VANCOUVER, BC / ACCESSWIRE / July 25, 2024 / Northern Dynasty Minerals Ltd. (TSX:NDM)(NYSE American:NAK) ("Northern Dynasty" or the "Company") reports it has received the remaining
Under the Amendment, the royalty investor (the "Royalty Holder") received the right to fund the second
As the Royalty Holder has now completed all six installments (for a total of
"We are pleased that the investor has completed the second of five
The Company received the first tranche of
About Northern Dynasty Minerals Ltd.
Northern Dynasty is a mineral exploration and development company based in Vancouver, Canada. Northern Dynasty's principal asset, owned through its wholly owned Alaska-based U.S. subsidiary, Pebble Limited Partnership, is a
For further details on Northern Dynasty and the Pebble Project, please visit the Company's website at www.northerndynastyminerals.com or contact Investor services at (604) 684-6365 or within North America at 1- 800-667-2114. Review public filings, which include forward looking information cautionary language and risk factor disclosure regarding the Company and the Pebble Project in Canada at www.sedarplus.ca and in the United States at www.sec.gov.
Ronald W. Thiessen
President & CEO
U.S. Media Contact:
Dan Gagnier, Gagnier Communications (646) 569-5897
Forward Looking Information and other Cautionary Factors
This release includes certain statements that may be deemed "forward-looking statements" under the United States Private Securities Litigation Reform Act of 1995 and under applicable provisions of Canadian provincial securities laws. All statements in this release, other than statements of historical facts, which address permitting, development and production for the Pebble Project and the ability of the Company to successfully complete the full financing transaction discussed above (the "Royalty Financing") are forward-looking statements. These include statements regarding: (i) the ability of the Pebble Project to ultimately secure all required federal and state permits, (ii) if permitting is ultimately secured, the ability to demonstrate that the Pebble Project is commercially viable, (iii) the ability of the Company and/or the State of Alaska to challenge the EPA's Final Determination process under the Clean Water Act through legal actions; and (iv) the full payment of the balance of the payments under the final three tranches and the future determinations of the Royalty Holder to increase its investment and the successful completion of the full Royalty Financing.
Although Northern Dynasty ("NDM") believes the expectations expressed in these forward-looking statements are based on reasonable assumptions, such statements should not be in any way be construed as guarantees that the Pebble Project will secure all required government and environmental permits or regarding the ability of NDM to develop the Pebble Projects in light of the USACE remand decision and EPA's Final Determination.
Assumptions used by NDM to develop forward-looking statements include the following assumptions: (i) the Pebble Project will ultimately obtain all required environmental and other permits and all land use and other licenses and (ii) NDM will be successful in its legal action against the EPA and any action taken by the EPA in connection with the Final Determination will ultimately not be successful in restricting or prohibiting development of the Pebble Project; (iii) the full amounts under the remaining tranches of the Royalty Financing will be advanced by the investor by July 26, 2025 of which there is no assurance, and (iv) NDM will be able to secure the financing required to develop the Pebble Project, including the full Royalty Financing.
NDM is also subject to the specific risks inherent in the mining business as well as general economic and business conditions. Investors should also consider the risk factors identified in the Company's Annual Information Form for the year ended December 31, 2023, as filed on SEDAR plus and included in the Company's annual report on Form 40-F filed by the Company with the SEC on EDGAR, and the Company's Management Discussion and Analysis for the year ended December 31, 2023 and for the three months ended March 31, 2024 as filed on SEDAR plus and EDGAR, for a discussion of the risks that may impact our forward-looking statements.
The National Environment Policy Act Environmental Impact Statement process requires a comprehensive "alternatives assessment" be undertaken to consider a broad range of development alternatives, the final project design and operating parameters for the Pebble Project and associated infrastructure may vary significantly from that currently contemplated. As a result, the Company will continue to consider various development options and no final project design has been selected at this time.
For more information on the Company, Investors should review the Company's filings with the United States Securities and Exchange Commission at www.sec.gov and its home jurisdiction filings that are available at www.sedarplus.ca.
SOURCE: Northern Dynasty Minerals Ltd.
View the original press release on accesswire.com
FAQ
How much did Northern Dynasty Minerals (NAK) receive in the second tranche of the Royalty Agreement?
What are the royalty rates for gold and silver production from the Pebble Project after the second tranche?
When is the new expiration date for the balance of the Royalty Agreement?
How much additional investment could Northern Dynasty Minerals (NAK) potentially receive from the remaining tranches?
