HOYT LAKES,
MINNESOTA--(Marketwire - Nov. 12, 2010) - PolyMet Mining Corp.
(TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the
"Company") announced today that it has renegotiated its
debenture financing from Glencore AG ("Glencore"). The agreed
amendments to the debenture financing are as follows (collectively, the
"Financing Amendments"):
-- The maturity date of the Tranche A-D Debentures (collectively, the "Issued Debentures") has been extended from September 30, 2011 to September 30, 2012. The Issued Debentures were issued in four tranches between October 2008 and September 2009. The total initial principal of the Debentures is US$25 million with US$2.226 million of accrued interest as of September 30, 2010. The Issued Debentures continue to be exchangeable into common shares of PolyMet at US$4.00 per share, as agreed to in 2008. -- Cancellation of Glencore's commitment to purchase, and the Company's commitment to issue, US$25 million of Tranche E Debentures which were to be issued upon publication of the Final Environmental Impact Statement, receipt of a term sheet for construction financing, and other customary conditions. -- Cancellation of warrants to purchase 6.25 million common shares of PolyMet at US$3.00 at any time until September 30, 2011 issued to Glencore in connection with Debentures. -- Issuance of warrants to purchase 3 million common shares of PolyMet at US$2.00 at any time until December 31, 2015, issued to Glencore in consideration of the amendments listed above (the "New Warrants").
The off take and marketing
agreements whereby Glencore will market all of PolyMet's products for a
minimum of five years from the start of commercial production at
NorthMet are unaffected by the amendments to the financing agreements.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine
development company that controls 100% of the NorthMet
copper-nickel-precious metals ore body through a long-term lease and
owns 100% of the Erie Plant, a large processing facility located
approximately six miles from the ore body in the established mining
district of the Mesabi Range in northeastern Minnesota. PolyMet has
completed its Definitive Feasibility Study and is seeking environmental
and operating permits to enable it to commence production. The NorthMet
project is expected to require approximately one million man hours of
construction labor and create at least 400 long-term jobs, a level of
activity that will have a significant multiplier effect in the local
economy.
About Glencore
Glencore International AG, based in Baar, Switzerland, is a leading
privately held, diversified natural resources company with worldwide
activities in the smelting, refining, mining, processing, purchasing,
selling and marketing of metals and minerals, energy products and
agricultural products. Glencore AG, which maintains offices in
Stamford, Connecticut, is a subsidiary of Glencore International AG.
POLYMET MINING CORP.
Joe Scipioni, President
This news release contains certain forward-looking statements
concerning anticipated developments in PolyMet's operations in the
future. Forward-looking statements are frequently, but not always,
identified by words such as "expects,"
"anticipates," "believes," "intends,"
"estimates," "potential," "possible,"
"projects," "plans," and similar expressions, or
statements that events, conditions or results "will,"
"may," "could," or "should" occur or be
achieved or their negatives or other comparable words. These
forward-looking statements may include statements regarding our beliefs
related to the expected proceeds and closing of the registered direct
offering, exploration results and budgets, reserve estimates, mineral
resource estimates, work programs, capital expenditures, actions by
government authorities, including changes in government regulation, the
market price of natural resources, costs, or other statements that are
not a statement of fact. Forward-looking statements address future
events and conditions and therefore involve inherent risks and
uncertainties. Actual results may differ materially from those in the
forward-looking statements due to risks facing PolyMet or due to actual
facts differing from the assumptions underlying its predictions.
PolyMet's forward-looking statements are based on the beliefs,
expectations and opinions of management on the date the statements are
made, and PolyMet does not assume any obligation to update
forward-looking statements if circumstances or management's beliefs,
expectations and opinions should change.
Specific reference is made to PolyMet's most recent Annual Report on
Form 20-F for the fiscal year ended January 31, 2010 and in our other
filings with Canadian securities authorities and the Securities and
Exchange Commission, including our Report on Form 6-K providing
information with respect to our operations for the six months ended
July 31, 2010 for a discussion of some of the risk factors and other
considerations underlying forward-looking statements.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
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