Northern Dynasty Minerals Ltd (NYSEMKT:NAK) recently announced a pact with Cantor Fitzgerald Canada Corporation, TD Securities Inc. and BMO Capital Markets. The company announced entering into an agreement with the aforesaid companies on 11 January 2017. The two shall act as the co-lead underwriters and joint bookrunners, respectively so as to purchase Northern Dynasty Minerals Ltd’s 13,520,000 common shares. The price of share has been decided at US$1.85 per Offered Share. As per the agreement, there shall be aggregate gross proceeds worth US$25.0 million.
The underwriters presented with an Over-Allotment Option
Northern Dynasty also announced that Cantor Fitzgerald Canada Corporation, TD Securities Inc. and BMO Capital Markets will also be presented with an opportunity of over-allotment option, which can be implemented either fully or partially. These companies have an open option to buy 2,028,000 Offered Shares, furthermore. The offer from Northern Dynasty shall remain valid up to 30 days or a month, at an issue price of US$1.85 per share. This would allow Northern Dynasty, an additional gross proceed worth around US$3.75 million.
Northern Dynasty Minerals Ltd said that the underwriters will also be liable to receive cash commission of 5% of total gross proceeds of these offerings (including the amount from Over-Allotment Option).
Offered shares available across Canada
The company has also announced that these offered shares shall be available across Canada in all provinces, barring only Quebec. Also, these shares are available for purchase in the U.S. Northern Dynasty also made it clear that these shares are not at the disposal of any regulator for approval or disapproval.
The offering shall be concluded in the days to come, most probably by 26 January 2017. The company expects that the cash received by it through the proceeds of these offerings will help it in forwarding the multi-dimensional strategy it has on the way. It is expecting to address a few Acts through the proceeds received from offerings.
