Shares of mineral exploration firm Northern Dynasty Minerals Ltd. (NYSE: NAK) has been gaining momentum in early trades today. As of 11:42 a.m. EST, the price of the company’s stock was floating at $0.87 after a rise of +24.28%.
What’s driving the stock stronger?
Vancouver-based Northern Dynasty, an exploration and development company for minerals, is the owner company of Pebble Limited Partnership (“PLP”) that has been promoting the Pebble Project, one of the most important mineral resources in the world. The biggest asset of NAK is a 100% stake in a contiguous block of 2,402 mineral claims in southwest Alaska, which it owns through PLP. Additionally, the block includes the Pebble deposit, which is located 125 miles west of Bristol Bay and 200 miles south of Anchorage.
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In today’s news, Northern Dynasty reported that the US Army Corps of Engineers (“USACE”) has accepted an appeal request from PLP to begin a formal administrative appeal process. This appeal concerned Southwest Alaska’s Pebble Project and the negative Record of Decision (“ROD”) issued by the Alaska District in November 2020.
PLP submitted its Request for Appeal (RFA) to the USACE Pacific Ocean Division Engineer in Hawaii on January 19, 2021. A USACE letter dated February 24 explained that PLP’s RFA is “complete and is eligible for an appeal.” An environmental impact statement published by the USACE Alaska District finding PLP to be a no-go for fisheries in southwest Alaska was published in July 2020.
However, the USACE published on November 25, 2020, a report denying PLP on the grounds that its compensation mitigation plan (CMP) was not in the public interest and the project did not conform to the applicable Clean Water Act. In accordance with USACE guidelines, general appeals should be processed within 90 days, although under certain circumstances, they may be extended for a longer duration.