PolyMet Mining Corp.
("PolyMet" or the "Company") POM(NYSE MKT: PLM) - today announced that
it has renegotiated its convertible debentures with Glencore AG, a
wholly-owned subsidiary of Glencore plc (together "Glencore") to extend the
maturity date of the outstanding securities issuable under the debenture
financing.
Between October 2008 and September 2009, PolyMet issued to Glencore four
debentures (the "Debentures"). The initial principal of the Debentures is
US$25 million with US$9.240 million of capitalized and accrued interest as
of July 31, 2015. At maturity the initial principal and capitalized interest
will be exchanged into common shares of PolyMet at US$1.2920 per share
through exercise of the "Exchange Warrant".
The agreed amendments, which are subject to approval from the NYSE MKT and
the Toronto Stock Exchange for the listing additional shares, are as
follows:
-- The "Maturity Date" of the Issued Debentures has been
extended to the earlier of:
i) PolyMet giving Glencore ten days' notice that PolyMet
has received permits necessary to start construction
of the NorthMet project and availability of senior
construction finance, in a form reasonably acceptable
to Glencore (the "Early Maturity Event"), and
ii) March 31, 2016.
Previously the Maturity Date was the earlier of the Early Maturity Event and
September 30, 2015.
-- The interest rate has been adjusted to US$LIBOR plus
8% from US$LIBOR plus 4% as of August 1, 2015.
-- The terms of warrants giving Glencore the right to
purchase 6,458,001 common shares of PolyMet have been
amended such that the exercise price has been reduced
to US$0.9292 per share, being the greater of the market
price and the 5-day volume weighted average price
("VWAP"), from US$1.3007 per share. The warrants may
be exercised at any time until December 31, 2016 (previously
December 31, 2015) subject to mandatory exercise if
the 20-day VWAP of PolyMet common shares is equal
to or greater than 150% of the exercise price and
occurrence of the Early Maturity Event. The exercise
price of the warrants and the number of warrants are
subject to conventional anti-dilution provisions.
PolyMet president and CEO Jon Cherry stated, "Extending the maturity date to
the earlier of permits and construction finance or March 31, 2016 from
September 30, 2015 ties with the State's schedule for its adequacy
determination and Record of Decision in early February, 2016. These
amendments also demonstrate Glencore's continued support for PolyMet and the
NorthMet Project as we progress through completion of the environmental
review and permitting into construction and operations."
Glencore currently holds 78,724,821 common shares of PolyMet representing
approximately 28.5% of PolyMet's issued and outstanding common shares.
As a result of the extension of the Exchange Warrant, the number of common
shares issuable to Glencore under the Exchange Warrant would increase by
1,609,426 to 28,110,693 at March 31, 2016 (assuming US$ LIBOR at 1.0%), and
which, if exercised, would result in Glencore holding 106,835,515 common
shares representing approximately 35.1% 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 113,293,516
common shares representing approximately 36.4% 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 plc
c/o Glencore AG
Baarermattstrasse 3
CH-6340 Baar
Switzerland
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