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Palladium miner finishes recapitalization

North American Palladium (NAP) announced Aug. 6 that it has completed its recapitalization program with Brookfield Capital. NAP operates the Lac des Iles mine, northwest of Thunder Bay, one of two primary producers of palladium in the world.
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North American Palladium (NAP) announced Aug. 6 that it has completed its recapitalization program with Brookfield Capital.

North American Palladium (NAP) announced Aug. 6 that it has completed its recapitalization program with Brookfield Capital.

NAP operates the Lac des Iles mine, northwest of Thunder Bay, one of two primary producers of palladium in the world.

"The recapitalization is a major step toward normalizing NAP's capital structure and enhancing liquidity," said Phil du Toit, NAP president-CEO. "We believe we are now well-positioned to pursue the longer-term potential at our Lac des Iles mine."

The program received support at a meeting of the annual meeting of shareholders held on July 30 and received approval from the Ontario Superior Court of Justice on Aug. 5.

Back in April, the mining company entered into an agreement with Brookfield aimed to reducing its debt, boost its liquidity and conduct a strategic review process to scope out interest in the sale of the company.

All amounts owing to Brookfield have been converted into common shares of the company. In addition, all of the company's 2012 and 2014 convertible debentures have been converted into common shares of the company, and the convertible debentures will cease trading on the Toronto Stock Exchange and be delisted as of the close of trading on Aug. 10.

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