PolyMet Mining Corp. (TSX:POM)(NYSE MKT:PLM) ("PolyMet" or the
"Company") is pleased to announce the successful completion of its
$60.5 million offering (the "Rights Offering") of rights to acquire
common shares of PolyMet (the "Rights") which expired at 5:00 PM
EST on July 3, 2013. All amounts are in US$.
The Company received 3,194 subscriptions for a total of $95.485
million for 144.674 million common shares of PolyMet. Basic
Subscriptions have been allotted in full and Additional
Subscriptions have been allotted on a pro rata basis. Because the
Rights Offering was oversubscribed, Glencore AG ("Glencore", an
indirect wholly-owned subsidiary of Glencore Xstrata plc) did not
purchase any common shares under its standby commitment. Glencore
acquired 34.7% of the shares issued in the Basic and Additional
subscriptions.
"This is a tremendous outcome for PolyMet, demonstrating the
depth of support from Glencore and other shareholders as we
complete the environmental review and permitting process and
prepare for project construction," stated Jon Cherry, President and
CEO of PolyMet.
Shares Value - US$ Shares Allotted Value - US$
Basic Subscriptions 74,936,546 49,458,120 74,936,546 49,458,120
Additional
Subscription 69,737,237 46,026,576 16,699,656 11,021,773
Total 144,673,783 95,484,696 91,636,202 60,479,893
In addition to exercising their Rights, or causing them to be
exercised, the board of directors and senior management of PolyMet
have acquired 1,102,050 common shares through market purchases of
Rights or common shares.
Having repaid the $20 million bridge loan (including accrued
interest) advanced by Glencore on April 11, 2013 and paid the
standby fee of approximately $1.1 million to Glencore, PolyMet now
has approximately $51 million in cash. The primary use of funds
will be:
- Complete environmental review and permitting - $17 million
- Maintain existing infrastructure - $5 million
- Engineering prior to start of project construction - $10 million
- Long lead time equipment - $10 million
- General corporate purposes - $9 million
The shares subscribed for pursuant to the Rights Offering will
be delivered within five business days from today, in the same form
existing shares are held - by Computershare, by mail in certificate
form, or by your broker, nominee or custodian.
If you exercised your Additional Subscription Privilege, you
will receive less than the number of shares for which you
subscribed and your excess payment for shares that were not
allocated to you will be returned to you in the same manner as you
made the payment - by mail or through your broker.
Updated Capitalization Table
Issued & Outstanding 274,928,606
Convertible debentures 24,083,366 issuable @ $1.29 per share
Warrants 8,168,602 exercisable @ $1.35 per share
(weighted average price)
Options and restricted stock units 15,208,238 exercisable @ $1.64 per share
(weighted average price)
Fully diluted (including out-of-the 322,388,812
money)
Cash receivable and debentures
convertible on exercise of options
and warrants $65,881,986
Following completion of the Rights Offering, Glencore owns
78,724,821 PolyMet common shares, which represents approximately
28.6% of the total issued and outstanding common shares of PolyMet.
On a fully diluted basis (including exercise of all options,
warrants and the convertible debentures whether they are in or out
of the money) Glencore owns approximately 33.9% of PolyMet's common
shares.
About PolyMet
PolyMet Mining Corp. (www.polymetmining.com) is a
publicly-traded mine development company that owns 100% of Poly Met
Mining, Inc., a Minnesota corporation 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. Poly Met Mining, Inc. 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 two million hours of
construction labor, creating approximately 360 long-term jobs, a
level of activity that will have a significant multiplier effect in
the local economy.
POLYMET MINING CORP.
Jon Cherry, 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 use of proceeds raised from the Rights
Offering, the ability to receive environmental and operating
permits, job creation, 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 PolyMet's most recent Annual
Report on Form 20-F for the fiscal year ended January 31, 2013 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 months ended April 30, 2013 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.
PolyMet has filed a registration statement (including a
prospectus) with the U.S. Securities and Exchange Commission, for
the offering to which this communication relates. Before investing,
prospective investors should read the prospectus in that
registration statement and other documents the issuer has filed
with the U.S. Securities and Exchange Commission, for more complete
information about PolyMet and this offering. The documents are
available free of charge by visiting EDGAR on the U.S. Securities
and Exchange Commission website at www.sec.gov. Alternatively,
PolyMet will arrange to send you the prospectus if you request it
by calling 1-416-915-4149.
Contacts: PolyMet Mining Corp. - Corporate Douglas Newby Chief
Financial Officer +1 (651) 389-4105dnewby@polymetmining.com Media
LaTisha Gietzen VP - Public, Gov't & Environmental Affairs +1
(218) 471-2150lgietzen@polymetmining.com PolyMet Mining Corp. -
Investor Relations Jenny Knudson VP - Investor Relations +1 (651)
389-4110jknudson@polymetmining.com www.polymetmining.com MZ North
America Pascal Nigen Senior Vice-President +1 (212)
301-7149pnigen@mzgroup.us www.mzgroup.us
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