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Northern Dynasty Minerals (TSX:NDM) is raising up to $20 million through the issuance of special warrants, and through an acquisition of Cannon Point Resources, an inactive TSX Venture-listed company whose primary asset is $4.7 million in cash. As per CEO.ca, Cannon Point is controlled by financier Frank Guistra.
Northern Dynasty Minerals (TSX:NDM) is raising up to $20 million through the issuance of special warrants, and through an acquisition of Cannon Point Resources, an inactive TSX Venture-listed company whose primary asset is $4.7 million in cash. As per CEO.ca, Cannon Point is controlled by financier Frank Guistra.
As quoted in the company’s press release:
Based on a letter agreement dated today, the Company expects to acquire 100% of Cannon Point for approximately 12.9 million Northern Dynasty common shares, subject to the approval of a special 2/3 majority vote of Cannon Point shareholders as well as customary regulatory and judicial approvals. The acquisition is not subject to Northern Dynasty shareholder approval. During the merger process, which will be by conventional statutory plan of arrangement, Cannon Point has agreed to make a secured credit facility for $4.25 million available to Northern Dynasty. The amounts borrowed would be repayable after 30 days if due to a Northern Dynasty breach and 180 days from termination if the merger does not complete for any other reason. Holders of approximately 21% of Cannon Point Shares have agreed to support the merger transaction, including shareholders associated with Fiore Management & Advisory Corp. The acquisition of Cannon Point is subject to negotiation of a definitive agreement, which will be filed on SEDAR.com when executed which is anticipated to occur within the next 30 days. The private placement of Special Warrants is not conditional on the Cannon Point acquisition, but the Cannon Point acquisition is conditional on at least $10 million of Special Warrants being sold.