Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is having a relatively strong day in the market today, and for good reason. The company announced the closing of a transaction that brings millions through the door.
Of course, the news excited investors who are sending the stock for the top. Today, we’ll talk about:
- The transaction closing;
- what we’re seeing from NAK stock as a result; and
- what we’ll be watching for ahead.
NAK Is Climbing On Transaction Closing
As mentioned above, Northern Dynasty Minerals is having a strong day in the market today after announcing the closing of a transaction. The announcement came by way of press release early this morning.
In the release, the company announced that the bought deal offering that was recently announced has closed. The company said that this included the exercise in full of the over-allotment option.
Through the transaction, a total of 17,968,750 shares of NAK were sold at a price of $0.64 per share. This generated gross proceeds of approximatly $11.5 million. The company also said that it paid a 6% commission to the underwriters involved in the deal.
In the release, the company said that it will be using the funds for the following reasons:
- Operating expenses including engineering, environmental, permitting and evaluation expenses associated with the Pebble Project. NAK also said that the proceeds will be used for the advancement of completion of the United States Army Corps of Engineers Environmental Impact Study.
- The company will also use the funds to enhance outreach and engagement with political and regulatory offices in the Alaska State and US federal government, Alaska Native partners and broader regional and state-wide stakeholder groups.
- Finally, funds will also be used for general corporate purposes.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. For Northern Dynasty Minerals, the news that was reported today was overwhelmingly positive.
After all, the new funding will go a long way on the path to develop the Pebble Project. As investors in the company know, this project could become one of the world’s largest mines of gold, silver and several other materials. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:56), NAK is trading at $0.69 per share after a gain of $0.027 per share or 4.14% thus 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. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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