HOYT LAKES, MINNESOTA--(Marketwire
- Dec. 16, 2010) - PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM)
("PolyMet" or the
"Company") announced today that the Board of Iron Range
Resources ("IRR") has, on the commissioner's recommendation,
approved a secured loan to PolyMet of up to
$4 million. The IRR board is composed of five members of the Minnesota
Senate, five members Minnesota House of Representatives and three
citizen members. The loan agreement between the IRR and PolyMet will provide funding from the Taconite Area
Environmental Protection Fund to purchase lands for public use, to
support the creation of jobs, and to diversify and expand the economy
of the region.
The Iron Range Resources agency was created seventy years ago by the
State Legislature to stabilize and enhance the economy of northeastern
Minnesota's Taconite Assistance Area. PolyMet's
NorthMet copper-nickel-precious metals
project, located in the established Mesabi mining district in
northeastern Minnesota, lies within the funding jurisdiction of the
IRR.
The loan will be used to purchase forest land, wetlands, and lakes with
high recreational value that would become available for public use and
enjoyment. These properties, which PolyMet
currently has under purchase option, would be purchased for future use
as part of a proposed land exchange for surface rights at the proposed NorthMet mine site currently controlled by the U.S.
Forest Service.
The $4 million loan will be secured by the land to be acquired from
proceeds of the loan, carry a fixed interest rate of 5% per annum, and
will be repayable on December 31, 2015. Subject to regulatory approval,
the Company has also agreed to issue warrants giving the IRR the right
to purchase up to 400,000 shares of PolyMet
common stock at US$2.50 per share at any time until December 31, 2015.
"By providing this loan, Iron Range Resources is helping to
advance regional growth and secure public access to important
lands," said Joe Scipioni, president and
CEO of PolyMet. "This source of funds
from IRR is an important step in PolyMet's
effort to create jobs in northern Minnesota to the benefit of the
local, regional, and state economies. Bringing the former LTV plant
back into operation, producing high value copper, nickel, and precious
metals, is both an exciting and strategic opportunity."
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.
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 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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