PolyMet and Glencore Agree to Extend Term of US$32.2 Million Convertible Debentures
April 25 2014 - 8:08AM
Marketwired
PolyMet and Glencore Agree to Extend Term of US$32.2 Million
Convertible Debentures
ST. PAUL, MINNESOTA--(Marketwired - Apr 25, 2014) - PolyMet
Mining Corp. ("PolyMet" or the "Company") (TSX:POM)(NYSEMKT:PLM)
today announced that it has renegotiated its debenture financing
with Glencore AG, a wholly-owned subsidiary of Glencore Xstrata plc
(together "Glencore") to extend the maturity date of the
outstanding securities issuable under the debenture financing. The
agreed amendments (collectively, the "Financing Amendments"), which
are subject to approval for the listing additional shares from the
NYSEMKT and the Toronto Stock Exchange, are as follows:
- The maturity date of the Tranche A-D Debentures (collectively,
the "Issued Debentures") has been extended from the earlier to
occur 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, to the extended maturity date
(the "Extended Maturity Date") of the earlier to occur of i) the
Early Maturity Event, and ii) September 30, 2015.
- Upon occurrence of the Extended Maturity Date, the initial
principal and capitalized interest will be exchanged into common
shares of PolyMet at US$1.2920 per share (the "Exchange Warrant").
The Issued Debentures were issued in four tranches between October
2008 and September 2009. The total initial principal of the
Debentures is US$25 million with US$7.208 million of accrued
interest as at April 24, 2014.
Glencore currently
holds 78,724,821 common shares of PolyMet representing
approximately 28.6% of PolyMet's issued and outstanding common
shares.
As a result of the
extension of the Exchange Warrant, the number of common shares
issuable to Glencore under the Exchange Warrant would increase by
1,300,556 to 26,829,014 at September 30, 2015 (assuming US$ LIBOR
at 1.0%), and which, if exercised, would result in Glencore holding
105,553,826 common shares representing approximately 34.9% of the
outstanding common shares of PolyMet (assuming no other shares
committed under existing compensation agreements were issued by
PolyMet.)
Including 6,458,001
shares issuable upon exercise of other warrants held by Glencore
but excluding issuance of shares committed to others under existing
share compensation agreements, Glencore would hold a total of
112,011,827 common shares representing approximately 36.3% of
PolyMet's partially diluted common shares (again assuming no other
shares committed under existing compensation agreements were issued
by PolyMet.)
Glencore's decision
to enter into the Financing Amendments was made for investment
purposes. Glencore will continue to review its investment
alternatives from time to time and may determine to increase or
decrease its equity ownership in PolyMet through the acquisition or
sale of additional outstanding common shares or other securities of
PolyMet through open market or privately negotiated transactions in
accordance with applicable securities laws. Persons who wish to
obtain a copy of the early warning report to be filed by Glencore
in connection with this transaction may obtain a copy of such
report from www.sedar.com or by contacting Glencore's
representative listed below.
For enquiries about
Glencore, including to request a copy of the related early warning
report, please contact:
Glencore Xstrata plc |
c/o Glencore AG |
Baarermattstrasse 3 |
CH-6340 Baar |
Switzerland |
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 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.
About Glencore
Xstrata plc
Glencore Xstrata plc
is one of the world's largest global diversified natural resource
companies. As a leading integrated producer and marketer of
commodities with a well-balanced portfolio of diverse industrial
assets, we are strongly positioned to capture value at every stage
of the supply chain, from sourcing materials deep underground to
delivering products to an international customer base.
Glencore Xstrata
plc's industrial and marketing activities are supported by a global
network of more than 90 offices located in over 50 countries.
Glencore Xstrata plc's diversified operations comprise over 150
mining and metallurgical sites, offshore oil production assets,
farms and agricultural facilities. Glencore Xstrata plc employs
approximately 190,000 people.
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 the
ability to receive regulatory approval for the Financing Amendments
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 October 31, 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.
Media: PolyMet Mining Corp.Bruce RichardsonCorporate
Communications+1 (651)
389-4111brichardson@polymetmining.comInvestor Relations: PolyMet
Mining Corp.Jenny KnudsonInvestor Relations+1 (651)
389-4110jknudson@polymetmining.comwww.polymetmining.com
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