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HOYT LAKES, MINNESOTA--(Marketwire - June 18, 2009) - PolyMet
Mining Corp. (TSX:POM)(NYSE Amex:PLM) (the
"Company") announced today that it has drawn the third
tranche (the "Tranche C 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$20 million has been drawn under the Facility, and
approximately US$333,000 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 1.97%) 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, and the Tranche C
Debenture, together with exercise of the above mentioned warrants and
exchange of capitalized interest on the Tranche A and Tranche B
Debentures, Glencore AG would own 11,333,250
shares of the Company, representing approximately 7.5% 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.
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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