Northern Dynasty Minerals Ltd (NYSEMKT:NAK) Pebble Limited Partnership (PLP) and the US Environmental Protection Agency (EPA) have recently filed to the federal court a joint notice of intent to enter into mediation, seeking to resolve an ongoing litigation under the Federal Advisory Committee Act (FACA).
Ongoing Litigation
PLP has submitted an action to the Alaska federal district court in 2014, accusing the US EPA of violating the FACA through close interactions with and unwarranted influence of environmental nongovernment organizations (ENGOs) and anti-mining activists in building ho the Bristol Bay Watershed Assessment. The company has also accused the US EPA of pre-emptively acting under the Clean Water Act.
Few months later, a federal court judge has granted its request for a preliminary injunction. This has prevented the US EPA from taking further steps towards the regulatory action under the Clean Water Act.
Resolving the Issue
Preparations for court proceedings as per the ongoing litigation mandates will not be affected by the joint notice filed to the federal court. Nonetheless, it reiterates the commitment of both parties to diplomatically negotiate on a viable resolution.
“We are optimistic that a resolution can now be found through mediation that will allow Pebble to propose a development plan for the project, and advance into the federal and state permitting process,” elaborated Ron Thiessen, Northern Dynasty Minerals CEO and President.
The mediation talks are expected to commence as soon as possible. The mediator will jointly be determined by PLP and the US EPA.
Private Placement
Earlier this year, Northern Dynasty Minerals has completed a 4.44-million-unit private placement, each of which consists of a share and a warrant at $0.45 per unit, amounting to about $2 million in gross proceeds.
Each warrant in this private placement is exercisable into a common share at an exercise price of $0.65 per common share until June 10, 2021.
Northern Dynasty Minerals intends to use the generated proceeds mainly for working capital purposes.
On Thursday, Northern Dynasty Minerals has closed at $1.91, up by 25.66%.
