PolyMet Mining Corp. (“PolyMet” or the “Company”) TSX: POM; NYSE
MKT: PLM – today reported that it has filed its financial results
for the year ended January 31, 2017. PolyMet controls 100 percent
of the development-stage NorthMet copper-nickel-precious metals
ore-body and the nearby Erie Plant, located near Hoyt Lakes in the
established mining district of the Mesabi Iron Range in
northeastern Minnesota.
The financial statements have been filed at
www.polymetmining.com and on SEDAR and EDGAR and have been prepared
in accordance with International Financial Reporting Standards. All
amounts are in U.S. funds. Copies can be obtained free of charge by
contacting the Corporate Secretary at First Canadian Place, 100
King Street West, Suite 5700, Toronto, Ontario M5X 1C7 or by e-mail
at info@polymetmining.com.
“PolyMet has made significant progress during the past year
including the state’s adequacy decision for the NorthMet Final
Environmental Impact Statement, submission of formal permit
applications that are being reviewed by the state, and issuance of
the United States Forest Service’s Final Record of Decision on the
land exchange. We also completed a private placement with
institutional investors, and we appreciate that Glencore
demonstrated its continued support by exercising its right to
maintain its pro rata ownership,” said Jon Cherry, president and
CEO. “From our perspective, the permit application review process
is proceeding well.”
More detail on the status of permit review can be found at:
http://polymet.mn.gov/news.html.
HIGHLIGHTS OF FISCAL 2017 AND FISCAL
2018 TO-DATE
- On March 3, 2016, the state determined
that the Final EIS addresses the objectives defined in the EIS
scoping review, meets procedural requirements and responds
appropriately to public comments. The 30-day period allowed by law
to challenge the state’s decision passed without any legal
challenge being filed. The Final EIS demonstrates that the NorthMet
Project can be constructed and operated in compliance with
environmental and human health standards.
- On June 2, 2016, the Company agreed to
issue up to an additional $14.0 million secured non-convertible
debentures to Glencore AG, a wholly owned subsidiary of Glencore
plc (together “Glencore”), to fund permitting and general corporate
purposes. The debentures are on similar terms as the existing
non-convertible senior secured debentures.
- On July 1, 2016, the Company repaid the
$4.0 million initial principal loan from the Iron Range Resources
and Rehabilitation Board.
- On July 11, 2016, the Company submitted
applications for water-related permits required to construct and
operate NorthMet.
- On July 12, 2016, the Eastern Region
Regional Office of the USFS issued its response to comments on the
Draft ROD for the land exchange and instructed the Superior
National Forest to proceed with completing the Final ROD.
- On August 2, 2016, the Company renewed
its request for Water Quality Certification under Section 401 of
the Clean Water Act.
- On August 24, 2016, the Company
submitted the air quality permit application required to construct
and operate NorthMet.
- On September 14, 2016, the Company and
Glencore agreed to extend the maturity date of outstanding secured
convertible debentures and outstanding secured non-convertible
debentures to the earlier of March 31, 2018, availability of $100
million of debt or equity financing, or when it is prudent for the
Company to repay the debt.
- On October 18, 2016, the Company closed
the initial tranche of a private placement for gross proceeds of
$19.472 million.
- On October 28, 2016, the Company closed
the second tranche of a private placement for gross proceeds of
$10.583 million pursuant to Glencore’s right to maintain its pro
rata ownership.
- On November 3, 2016, the Company
submitted the Permit to Mine application required to construct and
operate NorthMet.
- On December 15, 2016, the Company
received the American Exploration and Mining Association’s
Environmental Excellence Award for its responsible development of
the NorthMet Project.
- On December 20, 2016, the Memorandum of
Agreement of the Section 106 Consultation under the National
Historic Preservation Act was signed by the statutory parties.
- On January 9, 2017, the USFS issued its
Final ROD authorizing the land exchange.
- Loss for the twelve months ended
January 31, 2017, was $9.229 million compared with $9.346 million
for the prior year period. Excluding non-cash compensation and
amortization, general and administrative expenses for the twelve
months ended January 31, 2017, were $4.786 million compared with
$5.051 million for the prior year period.
- At January 31, 2017, PolyMet had cash
of $18.674 million compared with $10.256 million at January 31,
2016.
- PolyMet invested $23.445 million cash
into its NorthMet Project during the twelve months ended January
31, 2017, compared with $27.378 million in the prior year
period.
- As of January 31, 2017, PolyMet had
spent $117.872 million on environmental review and permitting, of
which $111.421 million has been spent since the NorthMet Project
moved from exploration to development stage.
GOALS AND OBJECTIVES FOR THE NEXT
TWELVE MONTHS
The environmental review and permitting process is managed by
the regulatory agencies and, therefore, timelines are not within
PolyMet’s control. Given these circumstances, PolyMet’s objectives
include:
- Completing the approved land exchange
with the USFS and transferring of title to the surface rights over
and around the NorthMet mineral rights to PolyMet.
- Obtaining a decision by the state on
401 Water Quality Certification and U.S. Army Corps of Engineers
Final ROD and 404 wetlands permit under the Clean Water Act.
- Publication of draft state permits
(Permit to Mine, air, water, dam safety and water appropriation
permits) for public comment.
- Decisions on state permit
issuances.
- Completion of definitive cost estimate
and project update following permits.
- Completion of project implementation
plan.
- Repayment, restructuring, and/or
conversion of Glencore loans.
- Completion of construction finance plan
including commitment of debt prior to the issuance of permits,
subject to typical conditions precedent such as receipt of key
permits.
Key Statistics
(in ‘000 US dollars, except per share
amounts)
Balance Sheet January 31, 2017
January 31, 2016
Cash & equivalents $ 18,674 $ 10,256 Working capital
16,267 2,162 Total assets 389,049 337,660 Total liabilities 181,720
153,003 Shareholders’ equity $ 207,329
$ 184,657
Year ended January 31,
Income Statement 2017
2016 General &
administrative expense $ 6,594 $ 5,508 Other Expenses: Finance
& Other 2,635 1,986 Disposal of Intangibles
- 1,852 Loss
before tax: 9,229 9,346 Other Comprehensive (Income)
(213 ) (199 ) Loss per share
0.03 0.03
Investing Activities NorthMet Property $ 23,445
$ 27,378 Weighted average shares
outstanding 288,998,010 276,812,978
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 Iron Range in
northeastern Minnesota. Poly Met Mining, Inc. has completed its
Definitive Feasibility Study. The NorthMet Final EIS 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 PolyMet’s most recent Annual
Information Form 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 the Company’s Form
40-F, for a discussion of some of the risk factors and other
considerations underlying forward-looking statements. The Annual
Information Form 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
Communicationsbrichardson@polymetmining.comorInvestor
RelationsJenny Knudson, +1 651-389-4110Investor
Relationsjknudson@polymetmining.com
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