Northern Dynasty stock jumps on $12 million royalty payment

Investing.com -- Shares of Northern Dynasty Minerals (NYSE:NAK) Ltd. (TSX:NDM; NYSE American:NAK) soared 10.8% following the announcement that the company has received a $12 million royalty payment. The Alaska-focused explorer, which specializes in gold, copper, and molybdenum, also revealed amendments to its royalty agreements that enhance payment flexibility and extend the expiration date.

The company reported that the payment represents the third tranche investment under its royalty agreement dated July 26, 2022, which has now been amended to allow for increased flexibility in payment installments and to extend the previously set expiration date of July 26, 2025. The second amendment to the royalty agreement also permits the Royalty Holder to fund the remaining two $12 million tranches by September 30, 2025, with an option to make a final tranche investment by December 31, 2025.

Northern Dynasty highlighted that the Royalty Holder obtained the right to fund three $12 million tranches by July 26, 2025. With the completion of each tranche, the Royalty Holder gains additional rights to a percentage of the payable gold and silver production from the Pebble Project. The recent early payment of the third tranche has prompted an extension for the completion of the subsequent tranches.

Ron Thiessen, President and CEO of Northern Dynasty, expressed satisfaction with the Royalty Holder’s third installment, which brings the total investment in the royalty to $36 million out of the possible $60 million available under the agreement. The terms of the royalty agreement, including the aggregate total purchase price and maximum royalty rates, remain unchanged.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

The positive market response to Northern Dynasty’s announcement reflects investor confidence in the company’s ability to secure funding and enhance the terms of its royalty agreements, which are crucial for the continued development of its Pebble Project. The stock’s movement today underscores the significance of the company’s strategic financial partnerships and the milestones achieved in its project financing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

NDM: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if NDM is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

Unlock ProPicks AI now