Shares of the Vancouver-based mining company Northern Dynasty Minerals Ltd. (NYSE:NAK) (TSX:NDM) plummetted after it was announced, on Friday, that its agreement with First Quantum Minerals Ltd. (TSX:FM), another Vancouver-based mining company, had been terminated.
According to Northern Dynasty, the agreement was terminated because both companies were “unable to reach agreement on the option and partnership transaction” which was being discussed in December 2017.
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The deadline for the transaction had been extended twice, once to April 30, 2018, and one other time earlier this month when the company announced that the agreement would be extended to the end of May.
The transaction would have involved a payment of $150 million USD over the course of four years to Nothern Dynasty, which would allow First Quantum to obtain a 50% interest in Northern Dynasty’s Pebble Limited Partnership.
During the start of the agreement, Ron Thiessen, Northern Dynasty’s President and CEO, had said that “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.”
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The share value of Northern Dynasty Minerals has fallen nearly 30% since the announcement was made on Friday. As of 2:45 pm EDT, shares of the company had reached a value of approximately $0.63 CAD and had reached a high of $0.69 and a low of $0.58.
Comparatively, Northern Dynasty closed at a share value of $0.90 on Thursday after reaching a high of $0.93 and a low of $0.90.
Shares of First Quantum also fell on Friday by just over 4% to reach $19.93. The company has been able to reach a high share value of $20.69 and a low of $19.80.
Comparatively, First Quantum closed at a share value of $20.80 on Thursday after reaching a high of $21.21 and a low of $20.74.
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