Polymet Restructures Glencore Debt
March 26 2018 - 8:16AM
Business Wire
Secures commitment for additional $80 million
in debentures
Poly Met Mining Inc., a wholly-owned subsidiary of PolyMet
Mining Corp. (together “PolyMet” or the “company”) TSX: POM; NYSE
AMERICAN: PLM – has negotiated a 12-month payment extension and
reduction in interest rates on approximately $152 million of debt
owed to Glencore AG, a wholly-owned subsidiary of Glencore plc. The
company also secured a commitment for an additional $80 million in
debentures from Glencore over the next 12 months to complete pre-
and post-permitting work, including detailed engineering and
environmental cleanup, and to purchase wetland credits.
The terms of the refinancing agreement result in:
- extending the term of $152 million of
outstanding secured convertible and non-convertible debentures to
March 31, 2019, repayable at any time if it is prudent to do so.
Convertibility of the relevant debenture also is extended to March
31, 2019 at the same conversion price of $1.2696 per share and has
been approved by the NYSE American and TSX;
- lowering the interest rate on the loans
from 12-month US$ LIBOR plus 15 percent to 12-month US$ LIBOR plus
10 percent; and
- issuing 6,458,001 purchase warrants
with an exercise price of $0.8231 and an expiration date of March
31, 2019, which has been approved by the NYSE American and TSX.
These replace 6,458,001 purchase warrants with an exercise price of
$0.8231 that expired December 31, 2017.
The additional $80 million in debentures is on the same terms as
the existing non-convertible debt. These funds are to be drawn in
five tranches, each cancellable at the company’s discretion, and
may be used to complete detailed engineering, purchase wetland
mitigation credits and conduct pre-construction work – all part of
project development and subject to applicable final permit
decisions. The funding may also be used to complete permitting and
cover rehabilitation and other environmental cleanup work such as
asbestos abatement at the former LTV Steel Mining Company plant
site.
The last of the public comment periods for the state’s draft
permit decisions closed March 16, 2018. The company is currently
awaiting final decisions for permits, which include water
appropriations, dam safety, water quality, air quality and the
Permit to Mine.
“As we continue to progress through the permitting process, we
appreciate Glencore’s continued financial and technical support for
this great project, which will produce essential metals including
those needed for renewable energy and electric vehicles,” said Jon
Cherry, president and CEO.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a publicly
traded mine development company that owns 100 percent of Poly Met
Mining, Inc., a Minnesota corporation that controls 100 percent of
the NorthMet copper-nickel-precious metals ore body through a
long-term lease and owns 100 percent of the former LTV Steel Mining
Company site, a large processing facility located approximately six
miles from the ore body in the established mining district of the
Mesabi Iron Range in northeastern Minnesota. The NorthMet Final
Environmental Impact Statement was published in November 2015,
preparing the way for decisions on permit applications. NorthMet is
expected to require approximately two million hours of construction
labor, create approximately 360 long-term jobs directly, and
generate a level of activity that will have a significant
multiplier effect in the local economy.
PolyMet Disclosures
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 the
ability to receive environmental and operating permits, job
creation, and the effect on the local economy, or other statements
that are not a statement of fact. Forward-looking statements
address future events and conditions and therefore involve inherent
known and unknown 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 risk factors and other
considerations underlying forward-looking statements discussed in
PolyMet’s most recent Annual Report on Form 40-F for the
fiscal year ended January 31, 2017, and in our other filings with
Canadian securities authorities and the U.S. Securities and
Exchange Commission, including our Report on Form 6-K providing
information with respect to our operations for the three and nine
months ended October 31, 2017.
The Annual Report on Form 40-F also contains the company’s
mineral resource and other data as required under National
Instrument 43-101.
The TSX has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release.
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PolyMet Mining Corp.MediaBruce Richardson, +1
651-389-4111Corporate
Communicationspolymetcommunications@polymetmining.comorInvestor
RelationsTony Gikas, +1 651-389-4110Investor
Relationsinvestorrelations@polymetmining.com
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