Toronto-based North American Palladium (NYSEMKT: PAL ) has lost its Midas touch.
On Monday, the Canadian precious metals miner announced that it has sold its NAP Quebec Mines gold mining division, which holds the Vezza and Sleeping Giant mines, to Maudore Minerals (NASDAQOTH: MAOMF ) .
The purchase price was $18 million and 1.5 million Maudore common shares, which currently trade for about $1.10 a share. Thus, NAP will reap approximately $19.6 million from the sale, a sum approximately equal to 8% of its own market cap. The firm expects this price to go up in future months, however, because the sales contract details that NAP is also entitled to an unspecified "adjustment to the purchase price for gold and silver inventory... post closing."
In a statement, NAP Interim CEO Andre Douchane (apparently, new COE Phil du Toit hasn't taken control just yet, although he's scheduled to do so today) noted that henceforth the firm will be "completely focused" on the expansion and operation of its Lac des Iles palladium mine.
PAL shares, however, reacted negatively to the announcement, trading down 1.4% Monday to close at $1.42.