North American Palladium Ltd., operator of the Lac des Iles palladium mine near Thunder Bay, Ont., said Tuesday it plans to buy the Vezza advanced gold exploration project in Quebec's Abitibi region from Agnico-Eagle Mines Ltd,. for $10 million in cash and stock.

NAP's gold division will add Vezza to several existing gold projects it owns in the same area. Bringing them to production would raise throughput at its Sleeping Giant mine's mill and raise the company's overall gold production significantly, said CEO William Biggar.

Vezza already has a power shaft, four underground levels and a hoist, but never went into production because of the lack of a mill. It has a measured and indicated resource of 288,600 ounces.

NAP, with the Lac des Iles mine, is one of North America's two palladium producers. Palladium is a metal used as a catalyst and in alloys.