Why Northern Dynasty Minerals Stock Dropped Nearly 17% This Morning
Shares of would-be "Pebble Project" goldminer Northern Dynasty Minerals' (NYSEMKT: NAK) stock sold off hard in early Monday trading, falling nearly 17% initially before retracing to arrive at about an 8% loss as of 11 AM EST. Curiously, the sell-off came in response to something that many investors might initially read as "good news."
Early this morning, Northern Dynasty announced that it has entered into a framework agreement with Canada's First Quantum Minerals Ltd., granting the latter an option to acquire up to 50% of Northern Dynasty's Pebble Project for $1.35 billion, in exchange for initial options payments totaling $150 million over four years.
The light at the end of Northern Dynasty's tunnel just got appreciably dimmer. Image source: Getty Images.
Source: Fool.com