PEBBLE.

• Author: Anderson, Tasha
• Position: Inside Alaska Business February 2018

Northern Dynasty Minerals entered into a framework agreement with First Quantum Minerals which says that an affiliate of First Quantum will execute an option agreement with Northern Dynasty. The option agreement contemplates an option payment of $150 million staged over four years that will entitle First Quantum to acquire the right to earn a 50 percent interest in the Pebble Limited Partnership for $1.35 billion. The option period may be extended for up to two years by First Quantum making payments to be agreed upon. The amounts will be offset against the $1.35 billion additional investment. Within five business days of the execution of the framework agreement, First Quantum will make an early option payment of $37.5 million to Northern Dynasty. The Early Option Price Installment will be applied solely for the purpose of progressing Pebble Project permitting.

Pebble CEO Tom Collier said, "This represents exciting news for the project. We will soon initiate the permitting and review process with a much smaller and more environmentally sensitive plan for a mine at Pebble. We are very pleased to have the financial resources to move through that process. This thorough and comprehensive process allows everyone an...