Completes third major corporate milestone this
year
VANCOUVER, Dec. 21, 2017 /CNW/ - Northern Dynasty Minerals
Ltd. (TSX: NDM; NYSE MKT: NAK) ("Northern Dynasty" or the
"Company") announces that its wholly-owned US-based subsidiary
Pebble Limited Partnership (the "Pebble Partnership") has finalized
documentation and will file for a US Clean Water Act 404 permit
with the US Army Corps of Engineers on Friday, December 22, thereby initiating federal
and state permitting for the Pebble Project under the National
Environmental Policy Act ("NEPA").
"At the outset of 2017, we established three ambitious corporate
objectives for Northern Dynasty and the Pebble Project," said
Northern Dynasty President & CEO Ron
Thiessen. "We committed to reaching a resolution with the US
Environmental Protection Agency ("EPA") to restore the Pebble
Project to normal course permitting, to re-partnering on the Pebble
Project and to initiating permitting under NEPA. As we approach the
end of the year, I'm proud to report that we will hit our mark on
all three important milestones."
On May 12, 2017, Northern Dynasty
announced a settlement agreement with EPA, whereby the federal
agency agreed to initiate a process to withdraw its Proposed
Determination under Section 404(c) of the Clean Water Act, thereby
clearing the way for Pebble to apply for a CWA 404 permit with the
US Army Corps of Engineers. On December 18, 2017, Northern Dynasty
announced a framework agreement with First Quantum Minerals Ltd.
("First Quantum") (TSX: FM), which contemplates that an affiliate
of First Quantum will subsequently execute a US$150 million option
agreement with Northern Dynasty, which provides for a future right
to acquire a 50% interest in the Pebble Partnership for a further
investment of US$1.35 billion. Northern Dynasty has now received an
initial US$37.5 million Early Option Installment Payment from First
Quantum.
"We are very pleased to move the Pebble Project forward to the
next important phase by initiating the NEPA permitting process this
year, as we committed to do," said Tom
Collier, Pebble Partnership CEO.
"The project design we're taking into permitting includes a
substantially reduced development footprint and meaningful new
environmental safeguards that respond directly to the priorities
and concerns we've heard from stakeholders in Alaska. Not only are we confident that Pebble
as currently envisaged will secure development permits from
federal, state and local regulatory agencies, we are confident it
will co-exist with the world class fisheries of Bristol Bay and
earn the support of the people of the region and the state."
Thiessen added, "Pebble continues to gain positive momentum, and
we will have more progress milestones to announce in 2018."
Development Highlights
Under the development scenario the Pebble Partnership will
submit for federal and state permitting on December 22, 2017:
- The footprint of Pebble's major mine facilities (pit, tailings
storage facility) will be substantially smaller than previous
planning iterations, at approximately 5.9 square miles;
- There will be no primary mine operations in the Upper Talarik
watershed, minimizing the project's environmental footprint and
addressing stakeholder concerns related to potential impacts on
local salmon productivity;
- The Tailing Storage Facility ("TSF") will incorporate a more
conservative design, including enhanced buttresses, greater slope
angles and an improved factor of safety;
- Potentially acid generating tailings will be separated from
other tailings and stored in a lined TSF. All tailings storage will
be consolidated in a single drainage-area (the North Fork
Koktuli);
- The mine plan does not include permanent waste rock piles,
significantly reducing risks associated with water quality;
- Cyanide will not be used in the mineral recovery process at
Pebble. (While cyanide is used safely in Alaska and around the world to enhance gold
recoveries, Pebble has taken a decision not to employ it in
direct response to stakeholder concerns);
- A new ferry route across Iliamna Lake will be evaluated in
order to minimize road construction, stream crossings, bridges and
culverts, as well as the proposed mine's impact on local wetlands;
and
- The mine will be designed to withstand the greatest possible
seismicity predicted by science.
Community Benefits
Anticipated benefits associated with the Pebble Project
include:
- During mine operations, estimated annual payments to the Lake
& Peninsula Borough will be $19-21 million; estimated annual payments to the
State of Alaska will be
$49-66 million per year;
- Total direct and indirect jobs created for Alaskans during mine
operations will be 1,500-2,000;
- The Pebble Partnership will advance a revenue sharing plan to
enhance local and regional financial benefits associated with
development of Pebble;
- The project will align with State of
Alaska public priorities by facilitating the development of
low-cost energy for rural communities;
- The Pebble Partnership will work with local commercial fishing
interests on ways to help with non-Pebble related challenges
associated with price and run variability, and the decline of local
participation in the fishery; and
- The Pebble Partnership will advance a business development and
mentoring initiative to ensure that Alaska Native village
corporations are ready to compete for construction and
operations-phase contracts.
About Northern Dynasty Minerals Ltd.
Northern Dynasty is a mineral exploration and development
company based in Vancouver,
Canada. Northern Dynasty's principal asset, owned through
its wholly-owned Alaska-based US
subsidiary Pebble Limited Partnership and other wholly-owned
subsidiaries, is a 100% interest in a contiguous block of 2,402
mineral claims in southwest Alaska, including the Pebble deposit. The
Pebble Partnership is the proponent of the Pebble Project, an
initiative to develop one of the world's most important mineral
resources.
For further details on Northern Dynasty and the Pebble Project,
please visit the Company's website at
www.northerndynastyminerals.com or contact Investor services at
(604) 684-6365 or within North
America at 1-800-667-2114. Review Canadian public filings at
www.sedar.com and US public filings at www.sec.gov.
Ronald W. Thiessen
President & CEO
Forward Looking Information and other
Cautionary Factors
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Company expects are forward-looking statements. Although the
Company believes the expectations expressed in its forward-looking
statements are based on reasonable assumptions, such statements
should not be in any way construed as guarantees of the ultimate
size, quality or commercial feasibility of the Pebble Project or of
the Company's future performance, the outcome of litigation or the
completion of the transactions referenced above.
Assumptions used by the Company to develop forward-looking
statements include the following: the Pebble Project will obtain
all required environmental and other permits and all land use and
other licenses, studies and development of the Pebble Project will
continue to be positive, and no geological or technical problems
will occur. The likelihood of a partnering transaction is subject
to risks related to the satisfactory completion of due diligence
and negotiations, including finalization of definitive agreements
and fulfilment of conditions precedent therein, including receipt
of all necessary approvals. Such process may not be
successfully completed or completed on terms satisfactory to the
Company. The likelihood of future mining at the Pebble Project is
subject to a large number of risks and will require achievement of
a number of technical, economic and legal objectives, including
obtaining necessary mining and construction permits, approvals,
licenses and title on a timely basis and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, the final outcome of
any litigation, completion of pre-feasibility and final feasibility
studies, preparation of all necessary engineering for surface or
underground mining and processing facilities as well as receipt of
significant additional financing to fund these objectives as well
as funding mine construction. Such funding may not be available to
the Company on acceptable terms or on any terms at all. There is no
known ore at the Pebble Project and there is no assurance that the
mineralization at the Pebble Project will ever be classified as
ore. The need for compliance with extensive environmental and
socio-economic rules and practices and the requirement for the
Company to obtain government permitting can cause a delay or even
abandonment of a mineral project. The Company is also subject to
the specific risks inherent in the mining business as well as
general economic and business conditions. For more information on
the Company, Investors should review the Company's filings with the
United States Securities and Exchange Commission and its home
jurisdiction filings that are available at www.sedar.com.
SOURCE Northern Dynasty Minerals Ltd.