Between 2001 and the partnership with Anglo in 2007 Northern Dynasty spent 160 million to discover and develop the Pebble projects (east and west). Only after that massive expenditure did Anglo join them as 50:50 partner, with the following commitments:

Anglo's staged investment includes a committed expenditure of US$125 million to complete a pre-feasibility study targeted at the end of 2008. After the completion of the pre-feasibility study, Anglo must, in order to retain its 50% interest, elect to commit to a further US$325 million for a feasibility study, the completion and approval of which is targeted for 2011, and this is expected to take the partnership to a production decision. Upon the decision to develop a mine, Anglo must elect to commit to the next US$975 million of expenditures to retain its 50% interest, completion of which will meet the US$1.425 billion requirement. Thereafter, any further expenditure will be funded on a 50:50 basis.

Of interest to LBSU shareholders should be the degree of development of the project before finding a partner, and the valuation of the project by the partnership (approximately 3 billion in total). NAK's market cap of course ran up to about 1.5 billion after the announcement. 

So, my questions to this board are:

1. What is the value of our claims considering the work that NAK has already done (certainly more than the market is giving us now, but just as certainly far far less than Anglo paid NAK to join their project after 160 million had already been spent) and the improved environmental outlook?

2. How do you foresee a deal being structured, given that pebble east and west were funded by Anglo for a feasibility study, while we are still in very early exploration stages?

I'm becoming more optimistic about Big Chunk, even though this is not why I first bought shares. My primary interest is still uranium. But I'm becoming a convert...

Geo