The company plans to raise up to C$15 million in the private placement
By Susanna Moon
Chicago, Aug. 31 – Northern Dynasty Minerals Ltd. said it sold C$10.2 million in the first tranche of a private placement of special warrants. The deal was announced Aug. 11 for up to C$15 million.
The company sold 25,624,408 special warrants exercisable into the company’s common shares at a price of C$0.399 each, according to a company press release.
As previously announced, the price per special warrant is an 11.33% discount to the Aug. 7 closing share price of C$0.45.
The special warrants are each convertible into one common share on a one-for-one basis.
Settlement is expected in mid-August.
Proceeds will be used for working capital and to advance the Pebble Project.
The company also said it plans to acquire Cannon Point Resources, whose primary asset is C$4.7 million cash, for about 12.9 million Northern Dynasty common shares.
Based in Vancouver, B.C., Northern Dynasty explores the Pebble property in Alaska for copper, gold and molybdenum.
Issuer: | Northern Dynasty Minerals Ltd.
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Issue: | Special warrants convertible into common shares
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Amount: | C$10 million (minimum), C$15 million (maximum)
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Price: | C$0.399
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Conversion ratio: | 1 for 1 basis
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Warrants: | No
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Pricing date: | Aug. 10
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Settlement date: | Aug. 31 for C$10.2 million
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Stock symbol: | Toronto: NDM
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Stock price: | C$0.45 at close Aug. 7
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Market capitalization: | C$49.48 million
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