Northern Dynasty and First Quantum extend deadline for finalizing Pebble option agreement

Apr 5, 2018

In December, Northern Dynasty Minerals and First Quantum Minerals announced that First quantum had agreed to buy into Pebble at $150 million for the option to become a 50 percent owner of the Pebble Limited Partnership at the end of four years. On Thursday, the companies extended the deadline to finalize that option agreement from April 6 to April 30.

Pebble Limited Partnership owner, Northern Dynasty Minerals, and potential partner, First Quantum Minerals, have a few more weeks to finalize their option agreement.

In December, the parties announced that First Quantum had agreed to buy into Pebble at $150 million over four years. At the end of those four years, First Quantum would have the option to become a 50 percent owner of PLP. The original framework agreement gave the companies until April 6 to finalize the agreement.

After the December announcement, Pebble Limited Partnership CEO Tom Collier said that the initial $150 million would help fund the permitting phase of the proposed gold, copper and molybdenum mine in Bristol Bay

Northern Dynasty announced in a press release Thursday that the deadline has been extended to April 30. A Northern Dynasty spokesperson said that the negotiations are requiring more time than the initial April 6 deadline, but he did not provide further detail. First Quantum Minerals did not immediately respond to a request for comment.

Northern Dynasty Minerals is the sole owner of the Pebble Limited Partnership. Northern Dynasty used to be partnered with Anglo American on the project. But Anglo American backed out of the partnership in 2013.

Contact the author at avery@kdlg.org or 907-842-5281.