Shares of Northern Dynasty Minerals Ltd. (AMEX:NAK) jumped 10.8% after the company announced the receipt of a $12 million royalty installment linked to its Pebble Project in Alaska. The payment marks a significant milestone in the company’s financing strategy and came alongside revised terms that provide more flexibility for future funding.
The $12 million represents the third installment under a royalty agreement first signed on July 26, 2022. As part of the latest update, Northern Dynasty revealed that the agreement has been amended to extend the original expiration date beyond July 26, 2025, and to allow greater flexibility in how the remaining tranches are paid. Under the revised terms, the Royalty Holder can now fund the remaining two tranches – each worth $12 million – by September 30, 2025. An optional final payment is also permitted by December 31, 2025.
Northern Dynasty explained that the early payment of the third tranche has triggered a deadline extension for the next funding rounds. With each tranche completed, the Royalty Holder secures increased rights to future gold and silver output from the company’s flagship Pebble Project, located in southwestern Alaska.
CEO Ron Thiessen praised the progress, noting that the total raised under the royalty deal now stands at $36 million out of a possible $60 million. Despite the updated schedule and terms, the overall purchase price and royalty rate structure remain intact.
The market’s positive reaction highlights investor optimism in Northern Dynasty’s ability to raise capital and restructure agreements that are critical to advancing one of the largest undeveloped copper-gold-molybdenum resources in the world. Today’s stock rally reflects growing confidence in the company’s financial strategy and project development timeline.