27th Jun 2006 14:39
Galahad Gold Plc27 June 2006 27 June 2006 Galahad Gold plc ("Galahad" or the Company") NORTHERN DYNASTY MINERALS ANNOUNCES THAT RIO TINTO's AFFILIATE IS TAKING A 9.9% STAKE Galahad confirms that Northern Dynasty Minerals Limited (TSX Venture - NDM; AMEX- NAK) (NDM), in which Galahad holds 22.2% (21.0% fully diluted), has announcedthat Kennecott Canada Exploration Inc. (Kennecott), part of the Rio Tinto group,is to purchase a holding of 9.9% for C$87.5m in NDM by acquiring new shares atC$10 per share. The full news is set out below. Ian Watson, Chairman of Galahad Gold, commented today: "We are pleased to hear that NDM has attracted this investment from one of theworld's principal mining companies. We regard the entry of this major as astrong endorsement of our decision to secure and to retain our long-standingposition in NDM. Following the investment by Kennecott, Galahad will remain thelargest shareholder in NDM with 20.0% (20.2% after the exercise of all optionsand warrants) and we look forward to the continued development of the Pebbledeposit". Enquiries to: GALAHAD GOLD plcIan Watson/Robert Wallace Tel: 020 7408 2002 PARKGREEN COMMUNICATIONSSimon Robinson/Cathy Malins Tel: 020 7493 3713 DRESDNER KLEINWORT WASSERSTEINChris Treneman Tel: 020 7623 8000 Northern Dynasty Minerals Ltd. 1020 • 800 W Pender St.Vancouver BCCanada V6C 2V6Tel 604 684-6365Fax 604 684-8092Toll Free 1 800 667-2114http://www.northerndynasty.com KENNECOTT TO ACQUIRE 9.9% OF NORTHERN DYNASTY June 27, 2006, Vancouver, B.C. - Northern Dynasty Minerals Ltd. (AMEX:NAK; TSXVenture: NDM), announces that Kennecott Canada Exploration Inc., an affiliate ofinternational mining company Rio Tinto plc, has signed an agreement to purchase8,745,845 Northern Dynasty shares at C$10 each for aggregate proceeds ofC$87,458,450. This investment will give Kennecott approximately a 9.9% interestin Northern Dynasty's issued share capital and does not involve any directproperty rights. Northern Dynasty is developing the world class PebbleCopper-Gold-Molybdenum Project in southwestern Alaska, USA. The share purchase agreement also provides Kennecott with a right of firstrefusal to participate in up to 50% of future share placements by NorthernDynasty, subject to customary exceptions, until Kennecott reaches 19.9% ofNorthern Dynasty's outstanding share capital. The right thereafter continues asa 19.9% right until Kennecott either fails to take up any offered allotment orthe fifth anniversary of the agreement, whichever occurs first.. Kennecott alsohas the right to second up to three technical advisors to complement NorthernDynasty's project management team. Kennecott is based in North America and ispart of the Rio Tinto group. Rio Tinto is a world leader in the mining industry. Completion of the share purchase agreement is unconditional, except forcustomary closing deliveries and normal course acceptances by securitiesregulatory authorities at the American Stock Exchange and TSX Venture Exchange.The common shares purchased will be subject to a four-month resale restrictedperiod in Canadian jurisdictions and subject to Rule 144 restrictions in theUnited States. Northern Dynasty Minerals Ltd is the parent company of Northern Dynasty MinesInc., a US company that is advancing the Pebble Project towards permitting andoperations. The copper, gold and molybdenum resources of the estimated 4.1billion tonne, open pit style Pebble West deposit and the estimated 1.8 billiontonne, underground style Pebble East deposit rank with the most important metalaccumulations in the world. The Pebble East deposit, discovered in 2005, isopen to further expansion and multi-rig, step out drilling recently commenced.Northern Dynasty has been engaged in comprehensive engineering, environmentaland socioeconomic studies on the Pebble West deposit since 2004. NorthernDynasty is currently expanding this work to include the Pebble East deposit inorder to create an integrated development plan for the Project. ON BEHALF OF THE BOARD OF DIRECTORS Ronald W. ThiessenPresident & CEO Forward Looking and other Cautionary Information Neither the TSX Venture Exchange nor any other regulatory authority acceptsresponsibility for the adequacy or accuracy of this release. This release includes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other than statements of historicalfacts, that address completion of financings, possible future mining,exploration and development activities, are forward-looking statements. Althoughthe Company believes the expectations expressed in such forward-lookingstatements are based on reasonable assumptions, such statements should not be inany way construed as guarantees of future performance and actual results ordevelopments may differ materially from those in the forward-looking statements.Factors that could cause actual results to differ materially from those inforward-looking statements include market prices for metals, the need forpermits and approvals, the conclusions of detailed feasibility and technicalanalyses, lower than expected grades and quantities of resources, mining ratesand recovery rates and the lack of availability of necessary capital, which maynot be available to the Company on terms acceptable to it or at all. The Companyis subject to the specific risks inherent in the mining business as well asgeneral economic and business conditions. For more information on the Company,Investors should review the Company's annual Form 20-F filing with the UnitedStates Securities Commission and its home jurisdiction filings that areavailable at www.sedar.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rio Tinto