North American Palladium Announces Financing From Brookfield
North American Palladium announced financings to fund the company’s ongoing expansion of its Lac des Iles (LDI) mine in Ontario.
It closed a US$130 million senior secured term loan from Brookfield Capital, private equity group of Brookfield Asset Management. Payment and satisfaction of the existing $72 million senior secured notes are due October 4, 2014. Fully subscribed private placement of approximately $20 million in flow-through shares are at a 2% premium to the relevant market price. The company extended the existing operating credit facility until July 4, 2014.
“We expect that these financings will enable us to complete the first phase of our LDI mine expansion and establish our operations for improved financial performance in 2013 and beyond,” said Dave Langille, NAP’s chief financial officer.
Phil du Toit, NAP’s chief executive officer, added: “We look forward to the completion of Phase I of the shaft expansion and the benefits it will have. Our ongoing review of our strategic mine planning has identified potential alternatives that may allow us to defer Phase II capital spending without compromising production growth.”