Northern Dynasty raises $5 million; finalizes buyout of Mission Gold Ltd.

Northern Dynasty Minerals Ltd. Dec. 23 reported completion of a C$5.18 million private placement in which the junior mining company issued 12,573,292 common shares at C41.2 cents each.

A referral fee of 300,000 common shares also was paid.

The shares are subject to applicable resale restrictions, including a four-month hold under Canadian legislation.

Following the financing, Northern Dynasty Minerals reported that a plan of arrangement to acquire all of the issued and outstanding common shares of Mission Gold Ltd. also has been completed.

Pursuant to the arrangement, Northern Dynasty issued 27,593,341 common shares to the former shareholders of Mission Gold (0.5467 of a Northern Dynasty common share for each issued Mission Gold common share).

In addition, warrants to purchase an aggregate of 13,182,076 common shares of Mission Gold at a price of C50 cents per share were exchanged for warrants to purchase an aggregate of 13,182,076 common shares of Northern Dynasty exercisable at a price of C55 cents per share by July 9, 2020 , and warrants to purchase an aggregate of 2,735,433 common shares of Mission Gold at a price of C$2.72 per share were exchanged for warrants to purchase an aggregate of 2,735,433 common shares of Northern Dynasty exercisable at a price of C$3.00 per share by Sept. 14, 2017.

Immediately following the buyout, Mission Gold's wholly-owned subsidiary, CIC Resources Inc., was sold for 437,597 common shares of a TSX-listed issuer valued at roughly C$1.5 million based on the closing price for such shares on Nov. 20.

Pursuant to the arrangement, Marcel de Groot, the co-founder and president of Pathway Capital and former Mission Gold advisor, was appointed a director of Northern Dynasty.

Northern Dynasty also appointed corporate and securities lawyer Desmond Balakrishnan to its board of directors.