Company also plans a $1 million direct sale of units at the same price
By Devika Patel
Knoxville, Tenn., May 26 –Northern Dynasty Minerals Ltd. priced a $14 million public sale of units with a $2.1 million greenshoe, according to a prospectus filed Thursday with the Securities and Exchange Commission. The offering will be conducted alongside a $1 million direct offering of units at the same price.
The company will sell 33,333,333 units of one common share and one warrant at $0.45 per unit, with 31,111,111 units sold on a commercially reasonable efforts basis to the public and 2,222,222 units sold in the direct offering.
Each five-year warrant is exercisable at $0.65, an 85.71% premium to the May 25 closing share price of $0.35.
Global Securities Corp. is the lead agent and Industrial Alliance Securities Inc. is also an agent.
Settlement is expected June 10.
Proceeds will be used for the company’s strategy to address the United States Environment Protection Agency’s proposed pre-emptive regulatory action under the United States Clean Water Act and to prepare the company’s Pebble Project for federal and state permitting, keep the Pebble project in good standing, advance a potential partner transaction and for working capital and general corporate purposes.
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: | Units of one common share and one warrant
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| Amount: | $15 million
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| Greenshoe: | $2.1 million, or 4,666,667 units
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| Units: | 33,333,333
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| Price: | $0.45
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| Warrants: | One warrant per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.65
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| Agents: | Global Securities Corp. (lead) and Industrial Alliance Securities Inc.
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| Pricing date: | May 26
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| Settlement date: | June 10
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| Stock symbol: | NYSE: NAK
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| Stock price: | $0.35 at close May 25
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| Market capitalization: | $75.8 million
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