Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having a great start to the trading session in the pre-market hours this morning after announcing that it has entered into a new agreement. The agreement secures the rights to use specific pieces of land for the construction and operation of the Pebble Project. As you could imagine, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about the agreement, what it means for the company, what we’re seeing from NAK stock and what we’ll be watching for ahead.
NAK Announces Right-of-Way Agreement
As mentioned above, Northern Dynasty Minerals is having an incredibly strong start ot the trading session this morning after the company announced that it has entered into a new agreement. In a press release issued early this morning, the company said that it has finalized the Right-of-Way Agreement with the Alaska Peninsula Corporation (APC).
Under the terms of the agreement, the right to use defined areas of APC land has been secured. These arreas of land will be used for the construction and operation of transportation infrastructure associated with the Pebble Project.
The Pebble Partnership is a mining project owned by NAK. However, for the project to come to fruition, the company needed uninterrupted access to go through land held by the APC. This agreement provides the company with the access that it needs in order to move forward with the project.
In a statement, Ron Thiessen, President and CEO at NAK, had the following to offer:
Today’s agreement not only secures access to the Pebble Project site for construction and operation of the proposed mine… It also represents a significant milestone in the developing relationship between Pebble and the Alaska Native people of the region.
We have always said Pebble must be developed in partnership with the local people and institutions of southwest Alaska. We have more work to do in that regard, but a Right-of-Way Agreement with one of the largest Alaska Native landowners in the region goes a long way to bringing our commitment to life.
Why This Is Important For The Company
Northern Dynasty Minerals has been working for years to bring the Pebble Project to life. However, the project has been marred by controversy and for a while, it was blocked by the EPA. However, after comign to a settlement with the EPA during a lengthy legal battle, the company has been making great progress.
The Right-of-Way agreement, while having nothing to do with the EPA, is an important step in the process of bringing the mine to fruition. After all, if the company cannot access the project, well, all of the work that it has done in order to get where it is with permitting and the EPA would have been for nothing. Well, today’s announcement shows that this is not the case.
Ultimately, it is a giant step forward for NAK and it’s plans of constructing one of the world’s most valuable precious metals mines.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Northern Dynasty Minerals, the news proved to be incredibly positive. After all, the company is now one step closer to realizing its goal of bringing the Pebble Project to life. So, it’s not surprising to see that investors are excited and pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (7:46), NAK is trading at $0.72 per share after a gain of $0.034 per share or 4.97% so far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NAK In particular, we’re interested in following the story surrounding the company’s continued work to bring the Pebble Project to life. After all, should the mine come to fruition, it will be one of the largest and most valuable sources of precious metals in the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!