HOYT LAKES, MINNESOTA- PolyMet
Mining Corp. (TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the "Company") has
closed the first tranche of its previously announced private placement
(the "Offering") with Glencore AG
("Glencore") issuing 5 million
common shares of the Company (the "Shares") at US$2.00 per
Share for gross proceeds of US$10 million.
Glencore Financing Summary
With completion of the first tranche of the Offering, Glencore has purchased common shares of PolyMet in the aggregate amount of US$35.0 million
and holds debentures of PolyMet in the
aggregate principal amount of US$27.6 million (including capitalized
interest as of December 31, 2010).
Glencore currently owns an aggregate of
14,433,962 common shares of PolyMet, representing
9.3% of the 154,525,791 common shares outstanding. In addition, Glencore has the right to exchange US$27.6 million
in debentures into an additional 6,887,783 common shares of PolyMet, to exercise outstanding warrants for an
additional 3 million common shares of PolyMet
at US$2.00 per share, and to acquire an additional 10 million common
shares of PolyMet pursuant to the Offering,
for a total of 34,321,745 common shares representing approximately
19.7% of PolyMet's partially diluted common
shares based on capitalized interest as of December 31, 2010.
Douglas Newby, CFO of PolyMet, said,
"This financing from Glencore, combined
with the previously announced extension of the term of the debentures,
provides PolyMet with equity finance as we
complete the environmental review process and move toward
production."
"Glencore's leading position as an
integrated marketer and producer of commodities provides it with
detailed knowledge of almost all the major mine development
opportunities around the world. We believe that Glencore's
continued support and investment constitutes a significant endorsement
of the PolyMet project and team," Joe Scipioni, CEO of PolyMet
added.
Transaction Details
The Shares have not been registered under the United States Securities
Act of 1933, as amended (the "Securities Act"), or any state
securities laws and may not be offered or sold in the United States
absent registration or an applicable exemption under the Securities Act
and applicable state laws.
This notice is issued pursuant to Rule 135c under the Securities Act
and shall not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of the Shares in any state in
which such offer, solicitation or sale would be unlawful prior to the registration
or qualification under the securities laws of any such state.
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 Mining Corp. 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 and a half million hours of construction labor and
create 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, CEO
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, but are not limited to, PolyMet's expectation with respect to applying to
the applicable securities regulatory authorities for a revocation of
the management cease trade order, 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 nine
months ended October 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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