Northern Dynasty Minerals Ltd (NYSE: NAK) is off to an incredibly strong start in the pre-market hours today, and for good reason. The company has been in the midst of a long, drawn out legal battle with the United States Environmental Protection Agency. However, today, that battle comes to an end. Of course, this is leading to excitement among investors and sending the stock upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:15), NAK is trading at $2.51 per share after a gain of $0.34 per share (15.67%) thus far today.
NAK Gains On EPA Agreement
As mentioned above, Northern Dynasty Minerals is having an incredibly strong day in the market today after it was announced that the company’s wholly-owned subsidiary, Pebble Limited Partnership, has reached an agreement with the United States Environmental Protection Agency. The settlement surrounds the longstanding dispute between NAK and the EPA with regard to pre-emptive regulatory action under the Clean Water Act.
According to the settlement agreement, the EP has agreed that the Pebble Project can proceed into the normal course of permitting. The EPA also agreed that it will not file a Recommendation Determination under the Clean Water Act until a final Environmental Impact Statement for the Pebble Project has been completed by the United States Army Corps of Engineers. That is, as long as it occurs within a period of 4 years following the settlement agreement and NAK files permit applications within 30 months of the date of the settlement agreement. The EPA will also initiate a process to propose to withdraw the Proposed Determination it issued under the Clean Water Act.
In return, the EPA expects NAK and the Pebble Partnership to terminate permanently and with prejudice two lawsuits it has brought against the EPA. Those suits include an action under the Federal Advisory Committee Act and an action under the Freedom of Information Act. In a statement, Ron Thiessen, President and CEO at Northern Dynasty Minerals, had the following to offer:
“From the outset of this unfortunate saga, we’ve asked for nothing more than fairness and due process under the law – the right to propose a development plan for Pebble and have it assessed against the robust environmental regulations and rigorous permitting requirements enforced in Alaska and the United States… Today’s settlement gives us precisely that, the same treatment every developer and investor in a stable, first world country should expect.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on NAK. In particular, we’re interested in following the company’s ongoing work with regard to the Pebble Project and happy to see that the company will be able to focus on the project at hand rather than fighting ridiculous legal battles. We’ll continue to follow the story closely and bring the news to you as it breaks!
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