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PolyMet and Glencore Agree to Extend Debentures, Cancel Existing Warrants and Issue New Warrants
Marketwire
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PolyMet Mining Corp.
TSX:
POM
NYSE Amex:
PLM
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November 12, 2010
PolyMet and Glencore Agree to Extend Debentures, Cancel Existing Warrants
and Issue New Warrants
HOYT LAKES, MINNESOTA--(Marketwire - Nov.
12, 2010) - 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 to the debenture financing are as follows
(collectively, the "Financing Amendments"):
-- The maturity date of the Tranche A-D Debentures (collectively, the
"Issued Debentures") has been extended from September 30, 2011 to
September 30, 2012.
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$2.226 million of accrued
interest as of September 30, 2010.
The Issued Debentures continue to be
exchangeable into common shares of PolyMet at US$4.00 per share, as
agreed to in 2008.
-- Cancellation of Glencores commitment to purchase, and the Companys
commitment to issue, US$25 million of Tranche E Debentures which were to
be issued upon publication of the Final Environmental Impact Statement,
receipt of a term sheet for construction financing, and other customary
conditions.
-- Cancellation of warrants to purchase 6.25 million common shares of
PolyMet at US$3.00 at any time until September 30, 2011 issued to
Glencore in connection with Debentures.
-- Issuance of warrants to purchase 3 million common shares of PolyMet at
US$2.00 at any time until December 31, 2015, issued to Glencore in
consideration of the amendments listed above (the "New Warrants").
The off take and marketing agreements whereby Glencore will market all of
PolyMets products for a minimum of five years from the start of commercial
production at NorthMet are unaffected by the amendments to the financing
agreements.
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 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 million man hours of construction labor and create
at least 400 long-term jobs, a level of activity that will have a
significant multiplier effect in the local economy.
About Glencore
Glencore International AG, based in Baar, Switzerland, is a leading
privately held, diversified natural resources company with worldwide
activities in the smelting, refining, mining, processing, purchasing,
selling and marketing of metals and minerals, energy products and
agricultural products.
Glencore AG, which maintains offices in Stamford,
Connecticut, is a subsidiary of Glencore International AG.
POLYMET MINING CORP.
Joe Scipioni, President
This news release contains certain forward-looking statements concerning
anticipated developments in PolyMets 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.
PolyMets 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 managements beliefs,
expectations and opinions should change.
Specific reference is made to PolyMets most recent Annual Report on Form
20-F for the fiscal year ended January 31, 2010 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, 2010 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.
CONTACT INFORMATION:
PolyMet - Corporate
Douglas Newby
Chief Financial Officer
+1 (212) 867-1834
or
PolyMet - Media
LaTisha Gietzen
VP Public, Govt & Environmental Affairs
+1 (218) 225-4417
or
PolyMet - Investors
Crystal Agresti
Investor Relations
+1 (845) 742-8153
www.polymetmining.com
INDUSTRY: Manufacturing and Production - Mining and Metals
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