TORONTO, ONTARIO--(Marketwire - Sept.
2, 2009) - North American palladium Ltd. ("NAP" or the
"Company") (TSX:PDL)(TSX:PDL.WT)(NYSE Amex:PAL)(NYSE
Amex:PAL.WS) has elected to withdraw from its previously announced best
efforts private placement of up to US$50 million, as the final terms
proposed by Casimir Capital L.P., the agents for the financing, were
not satisfactory.
"NAP remains financially strong with a cash position of $60
million as at June 30, 2009 and no long term debt," said William
J. Biggar, President and Chief Executive Officer. "In addition to
our strong balance sheet, we expect positive cash flow from the
anticipated restart of the Sleeping Giant mine in the fourth quarter of
this year. Although we have the ability to raise additional funds to
support our growth initiatives, we will be disciplined and only execute
on terms that are attractive to our Company."
NAP remains on track to meeting its core business objectives of 2009. In addition
to the anticipated restart of the Sleeping Giant gold mine, the Company
continues to be encouraged by the preliminary results of its ongoing
exploration program at its Lac des Iles palladium mine.
North American palladium: Re-engineering the Future
North American palladium is a precious metals company that owns the LDI
mine, which produced platinum group metals for 15 years until October
2008 when it was placed on temporary care and maintenance due to low
metal prices. Prior to the temporary shutdown, the mine had annual
production of 270,000
ounces of palladium, 20,000 ounces
of platinum and 20,000
ounces of gold. The Company also owns and
operates the Sleeping Giant gold mine located in the Abitibi region of
Quebec, which produced over 1 million ounces of gold from 1988-2008 at
an average grade of 11.44 g/t. North American palladium expects gold
production to resume in the fourth quarter of 2009 at an annual rate of
50,000 ounces.
North American palladium benefits from operating in a politically
stable jurisdiction with developed infrastructure and a history of
innovation and excellence in mining. Please visit www.nap.com for more information.
Cautionary Statement on Forward Looking Information
Certain information included in this press release, including any
information as to our future financial or operating performance, the
expected closing of the private placement of Notes and other statements
that express management's expectations or estimates of future
performance, constitute '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. The words
'expect', 'believe', 'will', 'intend', 'estimate' and similar
expressions identify forward-looking statements. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and competitive
uncertainties, risks and contingencies. North American palladium
cautions the reader that such forward-looking statements involve known
and unknown risks, uncertainties and other factors that may cause the
actual financial results, performance or achievements of North American
palladium to be materially different from the Company's estimated
future results, performance or achievements expressed or implied by
those forward-looking statements and that the forward-looking
statements are not guarantees of future performance. These statements
are also based on certain factors and assumptions. For more details on
these estimates, risks, assumptions and factors, see the Company's most
recent Form 40-F/Annual Information Form on file with the U.S.
Securities and Exchange Commission and Canadian provincial securities
regulatory authorities. There can be no assurance that the Private
Placement will be completed. In addition, there can be no assurance
that the Company's Lac des Iles or Sleeping Giant mines will be
successfully restarted or that other properties can be successfully
developed. 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.
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