PolyMet Agrees to Sell US$20 Million of Common Shares to Glencore
November 30 2011 - 5:32PM
Marketwired
PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the
"Company") announced today that it has entered into an agreement
with Glencore AG ("Glencore") to sell in a private placement
13,333,333 common shares of the Company (the "New Shares") at
US$1.50 per share for gross proceeds of US$20 million, before
deducting offering expenses. Closing is subject to the receipt of
regulatory approvals.
As part of the transaction, PolyMet agreed to issue to Glencore
warrants to purchase 2,600,000 common shares of PolyMet at US$1.50
per share at any time until December 31, 2015, subject to mandatory
exercise if the 20-day volume weighted average price of PolyMet
shares is equal to or greater than 150% the exercise price and
PolyMet provides notice to Glencore that it has received permits
necessary to start construction of the North Met Project and
availability of senior construction finance, in a form reasonably
acceptable to Glencore. Following satisfaction of the conditions
for mandatory exercise, if Glencore does not elect to exercise the
warrants, the warrants will expire.
Approximately US$7.0 million of the proceeds from the sale of
these shares will be used to repay outstanding notes (including
interest) to Cliffs Natural Resources Inc. The balance will be for
permitting and other costs (including general corporate purposes)
associated with the NorthMet project.
The New Shares offered and to be sold in the private placement
have not been registered under the United States Securities Act of
1933, as amended (the "Securities Act"), and may not be offered or
sold in the United States absent registration under the Securities
Act and applicable state securities laws or an applicable exemption
from those registration requirements.
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 New 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-quarter million
hours of construction labor and create approximately 360 long-term
jobs, a level of activity that will have a significant multiplier
effect in the local economy.
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", "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, 2011 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, 2011 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.
Contacts: PolyMet Mining Corp. - Corporate Douglas Newby Chief
Financial Officer +1 (212) 867-1834dnewby@polymetmining.com PolyMet
Mining Corp. - Media LaTisha Gietzen VP Public, Gov't &
Environmental Affairs +1 (218) 225-4417lgietzen@polymetmining.com
PolyMet Mining Corp. - Investors Crystal Agresti +1 (845)
742-8153cagresti@polymetmining.com PolyMet Mining Corp. - Investors
Alex Macdougall +1 (226)
663-3000amacdougall@polymetmining.comwww.polymetmining.com
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