Northern Dynasty, the developer of the contentious Pebble project, will seek to raise $14.5-million to continue its appeal of the Army Corps denial of a permit for its flagship Alaska project and to continue with engineering, environmental, permitting and evaluation work.
The TSX- and NYSE American-listed company on Monday announced that it had entered into an at-the-market (ATM) offering agreement with HC Wainwright & Co. Under the agreement, Northern Dynasty would be entitled, at its discretion and from time-to-time during the term of the agreement, to sell, through the agent, common shares of up to $14.5-million.
Besides the appeal and engineering work, Northern Dynasty would use the proceeds of the offering to maintain its corporate presence in Alaska, to maintain the Pebble project’s mineral claims, pursue partnering opportunities and to prepare engineering reports for the Pebble project.
The US Army Corps of Engineers in November denied a key water permit for the Pebble mine project. Northern Dynasty is appealing the decision.
The project is one of the world's largest copper and gold deposits and has been through a roller coaster of regulation over the past 13 years. Northern Dynasty’s US subsidiary believes that the permit denial is political and that the project has included necessary safeguards.