HOYT LAKES, MINNESOTA--(Marketwire -
Sept. 2, 2009) - PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM) (the
"Company") announced today that it has drawn the fourth
tranche (the "Tranche D Debenture") of US$5 million under the
US$50 million convertible debt facility with Glencore AG, which closed
on October 31, 2008 (the "Facility"). To date, a total of
US$25 million has been drawn under the Facility, and US$573,000 of
interest has been capitalized.
The floating rate secured debentures due on September 30, 2011 (the
"Debentures") have been issued by the Company's wholly-owned
Minnesota subsidiary, Poly Met Mining, Inc. (the "Issuer"),
and guaranteed by the Company, and secured by the assets of the Company
and the Issuer, including a pledge of the Company's 100% shareholding
in the Issuer. The Debentures bear interest at 12-month US dollar LIBOR
(currently 1.61%) plus 4%. The principal amount of the Debentures is
exchangeable into common shares of the Company at US$4.00 per share.
As part of the Facility, the Company previously issued to Glencore AG
warrants to purchase 6,250,000 common shares of the Company,
exercisable at US$5.00 per share prior to the start of commercial
production. Upon exchange of the Tranche A Debenture issued on October
31, 2008 in
the original principal amount of US$7.5 million, the Tranche B
Debenture issued on December 24, 2008 in the
original principal amount of US$7.5 million, the Tranche C Debenture
issued on June 18, 2009
in the original principal amount of US$5.0
million, and this Tranche D Debenture, together with exercise of the
above mentioned warrants and exchange of capitalized interest on the
Tranche A, Tranche B, and Tranche C Debentures, Glencore AG would own
approximately 12,643,000 shares of the Company, representing approximately
8.4% of the Company's issued capital on a partially-diluted basis.
The funds borrowed by the Issuer will be used to complete critical
engineering work and the Environmental Impact Study for the Company's
NorthMet project.
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 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 is a subsidiary of Glencore International AG. Glencore AG,
which maintains offices in Stamford, Connecticut, has purchased the
debentures from the Issuer and the warrants from the Company in the
ordinary course of its business. Glencore AG may from time to time
acquire additional securities of the Issuer and/or the Company, dispose
of some or all of the existing or additional securities it holds or
will hold, or may continue to hold its then current position.
Persons who wish to obtain a copy of the Early Warning Report filed in
connection with this transaction may obtain a copy of such report from www.sedar.com or by contacting the person(s) listed below.
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", and
similar expressions, or statements that events, conditions or results
"will", "may", "could", or
"should" occur or be achieved. These forward-looking
statements may include statements regarding exploration results and
budgets, reserve estimates, mineral resource estimates, work programs,
capital expenditures, timelines including timelines for third-party
studies and issuance of permits to operate by various government
agencies, strategic plans, the market price of metals, 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 currently anticipated in such statements due to a variety of
risks, uncertainties and other factors. 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 Form 20-F/Annual
Information Form on file with the SEC and Canadian securities
authorities 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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