North
American Palladium Announces Acceleration of Series A
Warrants
Toronto, Ontario,
December 8, 2010 - North American Palladium Ltd.
("NAP") (TSX: PDL) (NYSE Amex: PAL) announced today it has elected to
accelerate the expiry of the Series A warrants (TSX: PDL.WT.A) originally issued
on September 30, 2009 and October 8, 2009, as part of a bought deal unit
offering.
Each warrant entitles the
holder to purchase one common share of NAP at a price of C$4.25 per share.
The warrants
were originally set to expire on September 30, 2011 and will now expire at 5:00
p.m.
(Toronto
time) on January 14, 2011.
If all of the Series A warrants are exercised, the
Company will receive gross proceeds of approximately C$39 million.
Pursuant to the warrant indenture between the Company and Computershare Trust Company of Canada (the Trustee) dated
as of September 30, 2009, in the event that the 20-day volume weighted average
price of the common shares on the TSX is equal to or greater than C$5.75 per
share, the Company has the right to accelerate the expiry date of the Series A
warrants.
NAP has given notice of its
intention to accelerate the expiry date of the warrants to the registered holders
of the warrants, the Trustee and the TSX, in accordance with the provisions of
the warrant indenture.
The Series A warrants may be exercised prior to 5:00 p.m.
(Toronto time) on January 14, 2011, by surrendering the warrant
certificate to the Trustees Toronto office at 100 University Avenue, Toronto, Ontario, M5J 2Y1,
Attention: Manager, Corporate Trust, along with the duly completed and executed
exercise form.
A certified cheque, bank draft or
money order in lawful money of Canada
payable to or to the order of the Company equal to the exercise price multiplied
by the number of common shares subscribed for must also be included with the
exercise form.
A copy of the prospectus relating to the common shares underlying the
Series A warrants may be obtained from North American Palladium Ltd., Royal
Bank Plaza, South Tower, 200 Bay St., Suite 2350, Toronto, Ontario, M5J 2J2,
Attention: Camilla Bartosiewicz. The prospectus may also be accessed directly
from the U.S.
Securities and Exchange Commission at www.sec.gov and from the Canadian Securities
Administrators at www.sedar.com.
About
North American Palladium
NAP is a
Canadian precious metals company focused on growing its production of palladium
and gold in mining-friendly jurisdictions.
The Companys flagship mine, Lac des Iles, is
one of the worlds two primary palladium producers.
NAP also owns and operates
the Sleeping Giant gold mine located in the prolific Abitibi
region of Quebec.
The Company has extensive landholdings adjacent to both its Lac des Iles and Sleeping Giant mines, and a number of exploration
projects. NAP trades on the NYSE Amex under
the symbol PAL and on the TSX under the symbol PDL.
For further information please contact:
Camilla Bartosiewicz
Manager, Investor Relations and Corporate
Communications
Telephone:
416-360-7590 Ext.
7226
Email:
Computershare Investor Services Inc.
North America Toll-Free Telephone: 1-800-564-6253
International Telephone: 514-982-7555
Email:
Cautionary
Statement on Forward Looking Information
Certain
information included in this press release, including any information as to our
future exploration, financial or operating performance and other statements
that express managements 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, including the risk that operations at
the Lac des Iles and Sleeping Giant mines may not
proceed as planned, that other properties may not be successfully developed,
and that metal prices, foreign exchange assumptions and operating costs may
differ from managements expectations.
Without limiting the generality of the
foregoing, there can be no assurance that the holders of the warrants will
exercise their warrants prior to the new time of expiry.
The Company 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 Companys 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.
For more details on these estimates, risks, assumptions and factors, see the
Companys most recent Form 40-F/Annual Information Form on file with the U.S.
Securities and Exchange Commission and Canadian provincial securities
regulatory authorities.
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.