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NAP completes recapitalisation programme

7th August 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Troubled TSX-listed North American Palladium has completed its recapitalisation transaction with Brookfield Capital Partners aimed at significantly reducing its debt and enhancing its liquidity.

The sale process and recapitalisation plan represented the best alternatives available to preserve NAP’s substantial value in the assets and operations, while allowing it to pursue longer-term growth and expansion opportunities at its Lac des Iles mine, in Ontario.

All amounts owed to Brookfield had been converted into common shares. In addition, all NAP’s 2012 and 2014 convertible debentures had been converted into common shares of the company, and the convertible debentures would cease trading on the TSX and be delisted at the close of trading on August 10.

Upon closing, the company's common shares would be consolidated on the basis of one new common share for every 400 existing common shares.

As previously disclosed and in accordance with the recapitalisation agreement entered into between the company and Brookfield, the board of directors had been reconstituted.

The board now comprised Peter Gordon, David Nowak, John Jentz, Dean Chambers and Greg Fauquier.

The only aspect of the recapitalisation remaining was the completion of the rights offering, whereafter each NAP common share shareholders would receive one right for each common share held by August 20.

An aggregate of 49.6-million rights would be distributed, entitling the holders to acquire up to 8.37-million common shares at the subscription price for gross proceeds of $50-million.

Every 5.91 rights would entitle the holder thereof to purchase one common share at an exercise price of $5.97 a common share on September 10.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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