Carlos Slim, Frank Giustra, President Clinton. Credit: Clinton Foundation

Carlos Slim, Frank Giustra, President Clinton. Credit: Clinton Foundation

Huge news in junior mining.

Frank Giustra, a highly successful and controversial mining financier, with ties to President Clinton, is getting behind one of the richest and arguably most controversial deposits in all of mining.

And of course I’m talking about Northern Dynasty Minerals’ (TSX:NDM) Pebble deposit in Alaska, vetoed under the Clean Water Act by the EPA in 2014.

Northern Dynasty is acquiring Mr. Giustra’s cashed-up shell company, Cannon Point Resources (TSXV:CNP), as part of up to $20 million in financings announced Monday. Based on a closing price for NDM of $0.45 Monday, Northern Dynasty is paying C$5.805 million in shares for Cannon Point’s $4.7 million treasury. Cannon Point is also loaning $4.25 million to Northern Dynasty during the merger process.

The Cannon Point acquisition is conditional on at least $10 million of Special Warrants being sold at C$0.399 cents per share. Northern Dynasty may raise $10-15 million in Special Warrants, for up to approximately $20 million overall. If the deal goes through, Cannon Point will have the right to nominate one member to Northern Dynasty’s board.

Over $797 million has been invested to advance the Pebble project over the last twenty years. $595 million was provided by Anglo American plc, which wholly abandoned the project in 2014.

The EPA initiated a regularly process in Feb 2014 to block the Pebble project under the Clean Water Act. Recently, Wall Street Journal has criticized the EPA for its action against Pebble. The Pebble Limited Partnership, 100% controlled by Nothern Dynasty Minerals, is pursuing two lawsuits in Alaska federal court to force the EPA to the settlement table. If and when EPA issues are addressed, Northern Dynasty will be in a position to initiate state and federal permitting for the massive deposit.

Pebble is the largest undeveloped copper resource (80 B lb. MI&I) and the largest undeveloped gold resource (107 M oz.) in the world. In addition, the Pebble deposit hosts 5.5 B lb. molybdenum and 510 M oz. silver.

Northern Dynasty is a Hunter Dickinson group company led by CEO Ron Thiessen.

Over thirty years ago, Frank Giustra helped introduced Bob Hunter and Bob Dickinson, who went on to form the legendary mining partnership now known as HDI Mining.

Frank Giustra is off-the-grid for a few days on a fishing trip.

More to come. Follow the story @