PolyMet Closes Successful Rights Offering; Financed to Complete Permitting &
Prepare for Construction
ST. PAUL, MINNESOTA -- (Marketwired) -- 07/05/13 -- 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
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
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.
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.
PolyMet Mining Corp. - Corporate
Chief Financial Officer
+1 (651) 389-4105
VP - Public, Gov't & Environmental Affairs
+1 (218) 471-2150
PolyMet Mining Corp. - Investor Relations
VP - Investor Relations
+1 (651) 389-4110
MZ North America
+1 (212) 301-7149
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