Northern Dynasty Minerals (NAK) Stock Should Be On Your Watchlist

Northern Dynasty Minerals Ltd (NYSEAMERICAN: NAK) is making a run for the top in the market this morning, trading on early gains of nearly 10%. The gains come after the company provided an update, announcing an MOU that will allow for transportation of materials, personnel, and product from the Pebble Project. The company also provided a clue that the next big catalyst is just around the corner. Here’s what’s going on:

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NAK Stock Gains On Pebble Update

In the press release, Northern Dynasty Minerals said that its subsidiary, Pebble Limited Partnership, has signed an MOU to develop a consortium of Alaska Native village corporations. This consortium will act as a major transportation contractor for the proposed Pebble mine.

In the release, NAK said that the MOU was signed with Alaska Peninsula Corporation to lead the development of the consortium. The corporations in the consortium will have land holdings along the 82-mile access route to the Project.

Once formalized, these corporations will provide roat maintenance, truck transport, port operations, and other logistics services for the future Pebble mine. All in all, the MOU is expected to inject around $20 million of value into the Native Alaskan economy.

In the press release, NAK also provided a timeline with regard to the next big catalyst. According to the release, the United States Army Corps of Engineers is expected to publish its Final EIS statement on July 24, 2020.

Should this report prove to be positive, the company will be moving toward the final permitting of the project, that could prove to be overwhelmingly positive. In a statement, Ron Thiessen, President and CEO at Northern Dynasty, had the following to offer:

It has always been a core commitment of ours and the Pebble Partnership’s that this project benefit local communities and local people. As we move toward a Final Environmental Impact Statement (“EIS”) this month and a Record of Decision later this summer, we are rolling out a series of programs and announcements to bring that commitment to life.

This News Is Great

The news released today proved to be overwhelmingly positive. First and foremost, it shows that the company has the Native Alaskan community on its side. Moreover, Northern Dynasty Minerals is keeping to its committment to improve the economy in the area around the Pebble Project.

In fact, through the project, NAK intends on providing between 850 and 1,000 full time jobs, and up to 2,000 total jobs. This coupled with $400 million in annual mine costs, $50 million in state government revenues, and up to $20 million in revenues for the Lake & Peninsula Borough, sets the stage for a massive economic impact in the region.

At the same time, if all gets permitted, NAK should be easily able to afford these costs as the mine is expected to be one of the world’s largest deposit of gold and other valuable materials. All in all, the company isn’t making steps, it’s making strides toward what will likely be an incredibly profitable project. As such, NAK stock should be on your watchlist.

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