North American Palladium revealed yesterday (17th August) that it will aim to raise $50 million in order to focus on bringing two of its major projects to full pgm production.

The Toronto-based firm announced that it will sell seven per cent secured convertible notes, while also taking up an over-allotment option to place another $15 million worth of notes.

Lac des Iles, the company's flagship palladium mine in Ontario, has been on care and maintenance since October last year amid dropping pgm prices but could soon be reopened.

In addition, North American Palladium is hoping to restart its Sleeping Giant operation in Quebec - and the best-efforts private placement deal is designed to help meet both targets.

"[Proceeds from the sale will be used for] financing exploration and development expenditures at the company's Lac des Iles palladium mine and Sleeping Giant gold mine, funding capital expenditures and working capital requirements for a restart of the Lac des Iles mine, and for general corporate purposes," read a statement from the company.

The notes are set to mature four years from their date of issue and will be convertible at any point within the subsequent 90 days, while the private placement is expected to close next week.

North American Palladium is Canada's only primary palladium producer and currently contributes approximately four per cent of the world's supply of the precious metal.

Source:

NA Palladium will sell notes to raise $50m (17/08/09)

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