PolyMet and Glencore Agree to Extend Debentures
November 30 2011 - 5:35PM
Marketwired
PolyMet Mining Corp. (TSX:POM)(NYSE Amex:PLM) ("PolyMet" or the
"Company") announced today that it has renegotiated its debenture
financing from Glencore AG ("Glencore"). The agreed amendments
(collectively, the "Financing Amendments"), which are subject to
regulatory approvals, are as follows:
-- The maturity date of the Tranche A-D Debentures (collectively, the
"Issued Debentures") has been extended from September 30, 2012 to the
earlier of i) PolyMet giving Glencore ten days notice that PolyMet has
received permits necessary to start construction of the NorthMet project
and availability of senior construction finance, in a form reasonably
acceptable to Glencore (the "Early Maturity Event"), and ii) September
30, 2014.
Upon occurrence of the Early Maturity Event, the initial principal and
capitalized interest will be exchanged into common shares of PolyMet at
US$1.50 per share. The Issued Debentures were issued in four tranches
(Tranches A-D) between October 2008 and September 2009. The total
initial principal of the Debentures is US$25 million with US$3.548
million of accrued interest as of September 30, 2011.
-- The warrants issued to Glencore in November 2010 (the "2010 Warrants")
have been amended such that Glencore has the right to purchase 3 million
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.
The third and final tranche of the 2010 private placement,
comprising the sale of 5 million common shares at US$2.00 per share
no later than October 15, 2012 is unaffected by the amendments to
the financing agreements, as are the off take and marketing
agreements whereby Glencore will market all of PolyMet's products
for a minimum of five years from the start of commercial production
at NorthMet.
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) 225-4417 +1 (218) 225-4429
(FAX)lgietzen@polymetmining.com PolyMet Mining Corp. - Investors
Crystal Agresti +1 (845) 742-8153cagresti@polymetmining.com PolyMet
Mining Corp. Alex Macdougall +1 (226)
663-3000amacdougall@polymetmining.comwww.polymetmining.com
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