Pebble mine takes serious hit as major financial backer walks away
The Pebble mine project faces new threats as a deal with a major investor has been terminated, according to the Canadian company backing the proposed mine.
Northern Dynasty said a deal with another Canadian mining company, First Quantum, under which the company would have acquired a 50 percent share in the copper and gold project, has fallen apart.
Shares of Northern Dynasty declined by as much as one-third in early trading Friday.
Under the proposal signed in late 2017, First Quantum would pay $150 million for an option to acquire a 50 percent stake in the project for $1.35 billion.
The first payment was $37.5 million late last year. At the time, Northern Dynasty President Ron Thiessen said, "the immediate capital contribution from First Quantum will allow Northern Dynasty to execute on its plan to move the Pebble Project forward to initiate federal and state permitting in the very near-term.”