[Ferro-Alloys.com] 

PolyMet completes $195 million rights offering, with Glencore upping stake

PolyMet Mining (TSX: POM) has confirmed the successful completion of one of the largest rights offering on the market. Under the rights offering, PolyMet shareholders were distributed the right to acquire approximately 0.91 of a common share at $2.11 per share for each share held.

Starting on March 13 and up until its expiry on April 4, the company issued a total of 92,606,635 common share for gross proceeds of approximately $195 million, representing the full allotment. As previously disclosed, Glencore, PolyMet’s largest shareholder, has fully backed the rights offering.

This financing was initially announced last summer in conjunction with PolyMet’s joint venture agreement with Teck Resources to develop the NorthMet and Mesaba projects, which represent approximately one-half of the known 8-billion-tonne Duluth Complex resource in northeastern Minnesota.

To kickstart the newly formed NewRange Copper Nickel JV, which PolyMet and Teck each own 50%, Glencore committed to support PolyMet’s portion of the initial $170 million work program and other expenses in the amount of approximately $100 million. For this, Glencore agreed to fully backstop a rights offering by PolyMet to raise additional funding.

“We now have a balance sheet free of debt and a strong cash position to support our interest in NewRange Copper Nickel as it progresses towards a sanctioning and construction decision for the NorthMet project and further assesses the Mesaba resource,” stated PolyMet chairman and CEO Jon Cherry.

• [Editor:邢亚敏]