TSX-listed Northern Dynasty on Wednesday announced that it had secured interim financing to continue with its objective of securing a positive record of decision for the Pebble environmental impact assessment (EIS), while negotiations were “actively” ongoing for more substantial and long-term financing agreements.

The company said it would need additional financing by the end of 2019 to continue its efforts at the Pebble gold/copper project in Alaska.

“Northern Dynasty is actively exploring long-term project financing options among mining companies and private equity firms and others, utilising conventional asset-level financing, debt, royalty or alternative financing options,” it said in a statement.

The interim financing to keep Pebble going includes $5-million in a bought deal and up to $1.5-million in a concurrent private placement.

Cantor Fitzgerald Canada, as lead underwriter and sole bookrunner on behalf of itself and a syndicate of underwriters, would purchase, on a bought deal basis, 12.20-million common shares of the company at $0.41 an offered share.

In addition, Northern Dynasty has agreed to grant to the underwriters an over-allotment option to purchase up to an additional 1.83-million offered shares for a period of up to 30 days after the closing of the offering for potential additional gross proceeds of up to $0.75-million. 

Northern Dynasty is further proposing to undertake a non-brokered private placement to investors outside of US of up to 3.66-million common shares at the issue price for gross proceeds of up to $1 500 600.

The US Army Corps of Engineers in February released a draft EIS for the Pebble project, which indicates that its development can proceed without harm to the salmon fisheries of western Alaska or other significant impacts.

Northern Dynasty is proposing a conventional openpit mine that will produce an average of 613 000 t/y of copper/gold concentrate, containing 318-million pounds of copper a year, 362 000 oz/y of gold a year and 1.8-million ounces of silver a year over its 20-year mine life.

The project has been dogged by opposition owing to its location at the headwaters of Bristol Bay, which is home to a large population of sockeye salmon.