Why Northern Dynasty Minerals Stock Popped 12% This Morning
Northern Dynasty Minerals (NYSEMKT: NAK) is a funny stock. Three days ago, shares of the "Pebble Project" gold miner sold off hard on news that the company had signed an agreement to (eventually) sell fellow gold miner First Quantum Minerals Ltd. a 50% interest in its Pebble mining project. The $1.5 billion "option" price would entail four annual payments adding up to $150 million initially, with the option to pay a further $1.35 billion afterward to seal the deal.
Investors, perhaps worried that their potential profits from a successful Pebble project were being capped, revolted.
Today though, Northern Dynasty has just announced that the paperwork -- a U.S. Clean Water Act 404 permit with the U.S. Army Corps of Engineers -- that will be paid for with the first installment from First Quantum's investment is ready to be filed tomorrow. In response to this entirely expected "news," investors are pouring back into Northern Dynasty stock, which spiked 12% Thursday morning and is still up 6.4% as of 1:15 p.m. EST.
Source: Fool.com