THUNDER BAY – Mining – North American Palladium Ltd. have announced the company has closed the sale of its Quebec-based gold division, NAP Quebec Mines Ltd., which holds the Vezza mine, the Sleeping Giant mine and mill complex, and its nearby portfolio of exploration properties, to Maudore Minerals Ltd. A binding agreement in respect of the sale was entered into on closing.
The purchase price paid by Maudore consisted of $18 million in cash and 1.5 million common shares of Maudore, which shares are listed for trading on the TSX Venture Exchange.
North American Palladium Expanding Lac des Iles
The shares are subject to a four-month hold period in accordance with Canadian securities laws. An adjustment to the purchase price for gold and silver inventory will also result in additional payments to NAP post closing.
NAP intends to use the net proceeds from the sale to fund the mine expansion at its Lac des Iles palladium mine in Ontario.
Dundee Capital Markets acted as NAP’s financial advisor and Norton Rose as its legal advisor in connection with the sale process.
“Through the divestiture of the gold division, North American Palladium can now be completely focused on the Lac des Iles expansion and operation,” said André Douchane, Interim Chief Executive Officer. “The Lac des Iles mine is a world class palladium asset that is expected to be the main source of our future growth in production and cash flow.”
Mr. Douchane added: “We would like to thank our gold division employees for their hard work and dedication, and congratulate Maudore on advancing their growth strategy through the acquisition of our gold assets.”