Northern Dynasty Plunges As EPA Talks And Insider Selling Rattle Investor Confidence

Northern Dynasty Minerals (NYSE:NAK) closed sharply lower on Thursday, losing 31% after insider trading disclosures revealed share sales by key executives. The selloff erased gains following the July 4 announcement that the company is in talks to potentially resolve a legal standoff with the Environmental Protection Agency (EPA) over the copper-gold-molybdenum Pebble project.

Early this month, the stock surged to as high as $2.40 after disclosing the EPA talks, resulting in year-to-date gains of over 300%. A potential regulatory breakthrough for the Pebble deposit, widely regarded as one of the largest undeveloped copper and gold projects globally, rallied investors.

However, despite initial optimism, the firm clarified in a statement released by Accesswire on Thursday that “we have not reached a settlement,” and instead requested that the court resume proceedings. CEO Ron Thiessen added, “We now believe [summary judgment] will be the quickest, most direct avenue to get the veto removed.”

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This update, accompanied by insider sales from VP of Engineering Stephen Hodgson, Chairman Robert Dickinson, and VP of Public Affairs Michael Heatwole, weighed on investor sentiment. Still, Northern Dynasty maintains the project is vital to U.S. interests in securing domestic sources of critical minerals such as copper, molybdenum, and rhenium.

“For the U.S. to be self-sufficient in critical metals like copper… it must develop secure domestic supplies,” Thiessen said, pointing at the growing necessity for copper. He noted that lifting the veto would be “consistent with the stated pledge of this administration to remove impediments to permitting.”

Discovered in 1987, the Pebble project has long been caught between its massive mineral potential and strong environmental opposition. Yet, owing to its location near Bristol Bay, home to the world’s most productive wild sockeye salmon fishery, the site has faced pushback from conservation groups, local communities, and multiple administrations.

Gregory Beischer, a former president of the Alaska Miners Association and a member of the Alaska Minerals Commission, offered insight on the project for Benzinga.

“Every geologist would love to find a deposit like Pebble, but its location in a sensitive area raises concerns. As a mining engineer, I believe a mine could be developed without harming the fishery, but the resistance was strong.”

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