North American Palladium (NAP) has financed its working capital and capital expenditures for the company’s Lac des Iles palladium (LDI) mine. The company has extended its existing $60 million operating credit facility with The Bank of Nova Scotia until November 30, 2017.
In addition, NAP closed a $25 million secured term loan from Brookfield Capital Partners, the private equity group of Brookfield Asset Management. The loan bears interest at 10% per annum and is due December 31, 2016, with an option to extend for one additional year at the option of the company. The loan is secured by first priority security on the fixed assets and second priority security on accounts receivable and inventory. The facility is available in two advances of which $10 million is available immediately and US$15 million available until December 31, 2016.
“We appreciate the confidence that both The Bank of Nova Scotia and Brookfield, our largest shareholder, continue to demonstrate in North American Palladium,” said Jim Gallagher, CEO. “The extension to the credit facility provides us with the full flexibility of a revolving operating line for our day-to-day business requirements at slightly more favorable terms than previously. The term loan from Brookfield allows the LDI mine site to continue with a major expansion and upgrade of the water and tailings management facilities which will position the Company well to operate in an environmentally sustainable manner for at least the next 15 years.”
Toronto-based North American Palladium is an established precious metals producer that has been operating its LDI mine located in Ontario, Canada since 1993. LDI is one of only two primary producers of palladium in the world, offering investors exposure to palladium.