Northern Dynasty Minerals Ltd.

Northern Dynasty Minerals Ltd.

July 28, 2006 13:58 ET

Northern Dynasty Completes $87.5 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 28, 2006) - Northern Dynasty Minerals Ltd. (TSX VENTURE:NDM)(AMEX:NAK), announces the completion of the sale of 8.745 million common shares of the Company to Kennecott Canada Explorations Inc., an affiliate of Rio Tinto Plc, for proceeds of 87.5 million. As announced on June 27, 2006 the transaction represents the acquisition by Kennecott, through an affiliate, of approximately 9.9% of Northern Dynasty. The share sale was made pursuant to an agreement that provides Kennecott with certain pre-emptive rights to future Northern Dynasty financings, which allow Kennecott to increase its equity stake in Northern Dynasty to up to 19.9%. Up to three technical advisors from Kennecott will also be involved with Northern Dynasty in the Pebble Project team.

Northern Dynasty Minerals Ltd is the parent company of Northern Dynasty Mines Inc., a US company that is advancing the Pebble Project located in south-western Alaska, USA. The resources of the combined Pebble West and Pebble East deposits rank among the largest copper, gold, molybdenum accumulations in the world. The Pebble East deposit, discovered in 2005, is open to further expansion. Northern Dynasty has been engaged in comprehensive engineering, environmental and socioeconomic studies on the Pebble West deposit since 2004, and is currently expanding this work to include the Pebble East deposit, and create an integrated development plan for the Project.

Ronald W. Thiessen, President & CEO

Forward-Looking and other Cautionary Information

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities and Exchange Commission and its home jurisdiction filings that are available at

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Northern Dynasty Minerals Ltd.
    Shawn Wallace
    Investor Relations
    (604) 684-6365 or Toll Free: 1-800-667-2114
    (604) 684-8092 (FAX)