Northern Dynasty (NAK) Misled Shareholders About Approval of the Pebble Project
At the outset of the relevant period, Northern Dynasty announced that it was submitting a permit application to the U.S. Army Corps of Engineers for the Pebble Project. During the relevant period, Northern Dynasty provided updates on the Pebble Project, including its reduction in size, years of operation, and operational safeguards. However, Northern Dynasty failed to disclose that the Pebble Project was contrary to Clean Water Act guidelines and public interest, and was to extend for a longer duration and scope than conveyed to the public, and therefore, the permit application would be denied. Indeed, on August 24, 2020, the U.S. Army announced that it would not permit the Pebble Project as proposed under the Clean Water Act because “it would likely result in significant adverse effects on the aquatic system or human environment.” The U.S. Army asked the Company to submit a mitigation plan in response to its finding. On this news, Northern Dynasty’s stock declined almost 38% to close at $0.90 per share. On November 24, 2020, Northern Dynasty reported that the U.S. Army Corps of Engineers had rejected its permit applications relating to the Pebble Project. On this news, Northern Dynasty’s stock fell close to 50% to close at $.40 per share on November 25, 2020.
