North American Palladium Ltd. (AMEX: PAL) announced that the company has exercised their option to form an operating joint venture with Vale Inco Limited (formerly CVRD Inco Limited) over the Shebandowan Property. The Shebandowan property is located west of Thunder Bay in Ontario, and within 100 kilometers of the Company’s Lac des Iles mine.
As a result, North American has earned 50% interest in the former producing Shebandowan mine and the surrounding Haines and Conacher properties, totaling 7,842 hectares. In order to earn 50% interest in the property, the Company incurred $3 million in exploration expenditures and made a single cash payment of $200,000.
The Shebandowan Property includes the Shebandowan West Project, a nickel-copper-PGM property. This area is believed to have significant mineral projects and was only explored from 1972 to 1998. A mineral resource estimate for the Shebandowan West Project was released on October 25, 2007, attesting to this data.
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