FUNDING: North American Palladium offers debentures worth $43 million

ONTARIO – North American Palladium of Toronto is raising $43 million through the offering of 43,000 convertible unsecured subordinated debentures at a price of $1,000 each. The underwriting syndicate will be led by Scotia Capital and Raymond James. The underwriters have also been granted a 15% over-allotment.

NAP intends to use the proceeds from the offering for expansion of its Lac des Iles palladium mine 85 km west of Thunder Bay. The expansion will boost production to more than 250,000 oz of palladium annually at an estimated cost of US$200/oz starting in 2015. Production via shaft in the Offset zone is targeted for Q3 2013.

The company recent announced plans to sell its Vezza gold mine near Matagami, QC.

A history of the Lac des Iles mine is posted at NAPalladium.com.