North American Palladium Provides Pricing Update on Proposed Financing
30 Januar 2014 - 3:04PM
Marketwired
North American Palladium Provides Pricing Update on Proposed
Financing
TORONTO, ONTARIO--(Marketwired - Jan 30, 2014) -
All figures are in Canadian dollars except where
noted.
North American Palladium Ltd. ("NAP" or the "Company")
(TSX:PDL)(NYSEMKT:PAL) announced today that it has amended the
conversion price of its previously announced proposed public
offering of up to $32 million principal amount of 7.5% convertible
unsecured subordinated debentures and associated warrants (the
"Offering").
The conversion price was amended to reflect the volume weighted
average price ("VWAP") of the Common Shares on the Toronto Stock
Exchange on January 29, 2014. The initial conversion price of the
first tranche debentures will be C$0.635 and the initial exercise
price of the first tranche warrants will be C$0.762 (the exercise
of which remains subject to disinterested shareholder
approval).
A second amended term sheet and prospectus supplement is
expected to be filed with the securities regulatory authorities
today. The first tranche is now anticipated to close on or around
January 31, 2014.
The Company has filed a final base shelf prospectus and a final
prospectus supplement with the securities regulatory authorities
dated January 30, 2014 with a syndicate led by Edgecrest Capital
Corporation and with Canaccord Genuity Corp. in Canada and a
prospectus supplement and registration statement (including a base
prospectus) and a final prospectus supplement with the U.S.
Securities and Exchange Commission ("SEC") for the Offering. The
offering in Canada will be made only by the base shelf prospectus
and the amended final prospectus supplement.
Before you invest, you should read the base shelf prospectus,
the registration statement and the amended final prospectus
supplement and other documents the Company has filed with the
securities regulatory authorities in Canada and the SEC for more
complete information about the Company and this Offering. You may
get these documents for free by visiting SEDAR at www.sedar.com or
EDGAR at www.sec.gov. Alternatively, the lead agent (Edgecrest
Capital Corporation) can arrange to send you the Offering documents
if you so request by calling toll-free 1 (877) 257-7366 at
70 York Street, Suite 1500, Toronto, Ontario, M5J 1S9.
About North American Palladium
NAP is an established precious metals producer that has been
operating its Lac des Iles mine ("LDI") located in Ontario, Canada
since 1993. LDI is one of only two primary producers of palladium
in the world, offering investors leverage to the rising price of
palladium. The Company's shares trade on the NYSEMKT under the
symbol PAL and on the TSX under the symbol PDL.
Cautionary Statement
on Forward-Looking Information
There can be no assurance that this Offering will be completed
in a timely manner, or that alternative financing will be available
on acceptable terms, if at all. The completion of the Offering is
subject to the approval of the TSX, NYSEMKT, and all other
necessary regulatory approvals and the settlement of definitive
documentation, among other conditions. Failure to obtain necessary
financing in the near future may force NAP to pursue strategic
alternatives, which may include, among other things, a
recapitalization of its debt.
Certain information contained in this news release constitutes
'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. All
statements other than statements of historical fact are
forward-looking statements. The words 'will', 'expect', 'would',
'could', 'estimate' and similar expressions identify
forward-looking statements. Forward-looking statements in this news
release include, without limitation: the use of proceeds,
information pertaining to the Company's strategy, plans or future
financial or operating performance, such as the Company's LDI mine
expansion, timelines, production plans, projected expenditures,
operating cost estimates and other statements that express
management's expectations or estimates of future performance. The
Company cautions the reader that such forward-looking statements
involve known and unknown risk factors that may cause the actual
results to be materially different from those expressed or implied
by the forward-looking statements. Such risk factors include, but
are not limited to: the risk that the Offering may not be
completed, the risk that the Company may not be able to obtain
sufficient financing to fund its current needs including for
operating expenditures and for capital expenditures required to
continue the LDI mine expansion, the risk that the Company will not
be able to meet its financial obligations as they become due, the
possibility that metal prices and foreign exchange rates may
fluctuate, inherent risks associated with exploration, mining and
processing, the possibility that the LDI mine may not perform as
planned, and risks related to the availability of skilled labour.
For more details on these and other risk factors see the Company's
final prospectus supplement relating to the Offering on file, and
the amended and restated final prospectus supplement that will be
filed, with the SEC and Canadian provincial securities regulatory
authorities.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, while considered reasonable by
management, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. The
factors and assumptions contained in this news release, which may
prove to be incorrect, include, but are not limited to: that the
Company will continue in operation for the foreseeable future and
will be able to realize its assets and discharge its liabilities in
the normal course of business, that metal prices and exchange rates
between the Canadian and United States dollar will be consistent
with the Company's expectations, that there will be no material
delays affecting operations or the timing of ongoing development
projects, including commissioning the shaft, and that prices for
key mining and construction supplies will remain consistent with
the Company's expectations. The forward-looking statements are not
guarantees of future performance. 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.
North American Palladium Ltd.Camilla BartosiewiczDirector,
Investor Relations and Corporate
Communications416-360-7374Camilla@nap.com