North American Palladium Ltd.
TSX : PDL
TSX : PDL.WT
NYSE Amex : PAL
NYSE Amex : PAL.WS
TSX : PDL.WT.A

North American Palladium Ltd.

October 08, 2009 09:19 ET

NAP Closes Over-Allotment Option for Unit Offering and Private Placement of Flow-Through Shares

TORONTO, ONTARIO--(Marketwire - Oct. 8, 2009) - North American Palladium Ltd. ("NAP" or the "Company") (TSX:PDL)(TSX:PDL.WT)(TSX:PDL.WT.A)(NYSE Amex:PAL)(NYSE Amex:PAL.WS) has completed the exercise of the full over-allotment option granted in connection with its previously announced cross-border bought deal public offering, consisting of an additional 2,400,000 units at a price of C$3.15 per unit, for total gross proceeds of C$7,560,000. Each unit consists of one common share and one-half of one common share purchase warrant of the Company. Each whole warrant entitles the holder to purchase an additional common share at a price of C$4.25 per share, subject to adjustment, at any time on or prior to September 30, 2011, subject to early termination in certain circumstances. Thomas Weisel Partners Canada Inc. and Cormark Securities Inc. co-led the underwriting syndicate, which included Dundee Securities Corporation, Haywood Securities Inc. and Octagon Capital Corporation.

The Company has also closed its previously announced bought deal private placement of 4,000,000 flow-through shares at a price of C$3.75 per share for total gross proceeds of C$15,000,000. The shares were sold by the underwriting syndicate to accredited investors in Canada on a private placement basis pursuant to applicable Canadian securities laws. The flow-through shares are subject to a four-month hold period ending on February 9, 2010.

Total gross proceeds from the unit and flow through share offerings are approximately C$73 million.

North American Palladium: Re-engineering the Future

North American Palladium is a precious metals company that owns the Lac des Iles mine, which produced platinum group metals for 15 years until October 2008 when it was placed on temporary care and maintenance due to low metal prices. Prior to the temporary shutdown, the mine had annual production of 270,000 ounces of palladium, 20,000 ounces of platinum and 20,000 ounces of gold. The Company also owns and operates the Sleeping Giant gold mine located in the Abitibi region of Quebec, which produced over 1 million ounces of gold from 1988-2008 at an average grade of 11.44 g/t. North American Palladium expects commercial gold production to resume in the fourth quarter of 2009 at an annual rate of 50,000 ounces. North American Palladium benefits from operating in a politically stable jurisdiction with developed infrastructure and a history of innovation and excellence in mining.

Cautionary Statement on Forward Looking Information

Certain information included in this press release, including any information as to the individual use of proceeds of the offering, constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of North American Palladium to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. In addition, there can be no assurance that the Company's Lac des Iles or Sleeping Giant mines will be successfully restarted or that other properties can be successfully developed. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

Contact Information

  • North American Palladium Ltd.
    Jeffrey A. Swinoga
    Vice President, Finance & Chief Financial Officer
    416-360-7971 Ext. 222
    jswinoga@nap.com
    or
    North American Palladium Ltd.
    Annemarie Brissenden
    Director, Investor Relations
    416-360-7971 Ext. 226
    abrissenden@nap.com