Can you say, D-i-l-u-t-i-o-n?
Monday April 3, 6:20 pm Eastern Time
Company Press Release
North American Palladium Ltd. Announces U.S $90 Million Project Term Loan Commitment for Major Mine Expansion
THUNDER BAY, Ontario--(BUSINESS WIRE)--April 3, 2000--North American Palladium Ltd. (TSE:PDL - news) is pleased to announce that it has received and accepted a commitment letter from a syndicate of three Canadian chartered banks which have agreed to provide a project term loan in the amount of U.S.$90 million. The credit facility will be made available to the Company to partially finance the Lac des Iles mine expansion. The total cost to construct and complete the mine expansion is estimated to be U.S.$126.5 million and the Company expects to finance the balance of its funding requirements from the net proceeds of an equity offering.
The closing date for the credit facility will be not later than May 1, 2000 and is subject to usual conditions precedent for a project financing of its type, including a review of the AGRA Simons feasibility study by an independent engineer. The credit facility provides that the Company's major shareholder will guarantee all amounts due under the credit facility and fund any cost overruns which occur prior to completion of the mine expansion.
The Company is undertaking preliminary initiatives for the Lac des Iles mine expansion construction program, subject to the availability of financing and environmental permits. Because of these initiatives, the Company anticipates that a new 15,000 tonnes per day concentrator will be commissioned in second quarter 2001. Based on the feasibility study, the expanded operation is expected to produce an annual average of 248,900 ounces of palladium, 24,200 ounces of platinum, 19,100 ounces of gold, plus copper, nickel and cobalt over more than an eleven year mine life.
The Lac des Iles Mine is located 85 km north of Thunder Bay, Ontario and is Canada's only primary producer of platinum group metals and one of the largest platinum group metals deposits in the world. Palladium is a vital and essential component in the production of auto catalysts, which significantly reduce harmful automobile emissions. World demand for palladium continues to increase as a result of legislation enforcing stricter vehicle emission limits.
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