NEW YORK PolyMet Mining Corp., a copper-nickel-precious metals mine development company, is aiming to raise up to $60 million through a common share offering.
In addition, Glencore International AG, a subsidiary of Baar, Switzerland-based Glencore International Plc, will offer a $20-million loan to PolyMet subsidiary Poly Met Mining Inc. to fund operations. The loan also will allow the St. Paul, Minn.-based company to meet liquidity tests under a secured debenture due May 1, 2014, with a fixed interest rate of 4.721 percent per year.
"The combination of the bridge loan and rights offering ensures that we are well-financed for completing the environmental review and permitting phase of the NorthMet project," PolyMet president and chief executive officer Jon Cherry said in a statement. "The financing will also provide for the completion of preconstruction engineering design and allow for procurement of long-lead-time equipment in order to minimize the timeline from receipt of permits to start of commercial production."
As part of the deal, Glencore entered into a standby purchase agreement under which Glencore will purchase any PolyMet common shares offered that are not taken.
The NorthMet project in northeastern Minnesota is said to be one of the worlds largest undeveloped deposits of copper, nickel and platinum group metals.