North American Palladium (NAP) has agreed a major deal with a precious metals merchant for the purchasing of platinum group metals (pgms).

The firm has revealed the platinum and palladium purchase agreement with Auramet Trading will provide for the sale of an average of 10,000 ounces of palladium and 500 ounces of platinum per month over the next two years.

Welcoming the deal, President and Chief Executive of NAP, Jim Excell, commented: "This facility puts the value of our in-process precious metals to work in a cost effective and efficient manner."

He added that the arrangement "assures NAP's position as North America's premier palladium producer".

Under the terms of the agreement, NAP has granted a security interest to Auramet in the concentrates mined at NAP's Lac des Iles operation. NAP may receive advance payments of no more than an aggregate maximum amount of $25 million.

Ÿ Adfero Ltd