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, of 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.
Glencore also agreed to exercise its basic subscription right in full and purchase all unsubscribed common shares — 87,798,370 — under the rights offering pursuant to a standby commitment. Following completion of the rights offering, Glencore now owns 159,806,774 common shares, representing approximately 82.19% of PolyMet’s share capital.
The proceeds of the rights offering and standby commitment have been used to repay all of PolyMet’s unsecured and secured and convertible debt owed to Glencore, as well as costs related to the rights offering.
As mentioned, they are also intended to fund the company’s portion of the NewRange JV, which is looking to become the first to commercially mine copper, nickel, cobalt and other platinum group metals from Minnesota’s Duluth Complex.
“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,” PolyMet CEO Jon Cherry said in a news release.
The NorthMet project has received its permits, and the JV partners are working through litigation towards development, construction and operation of a 32,000 t/d mine and mineral processing facility. The nearby Mesaba deposit is in early stages of design, engineering and evaluation, and will be assessed for potential future development based on a thorough set of social and environmental baseline studies, PolyMet said.
FAQs
Glencore proposed to acquire all of the remaining outstanding common shares of PolyMet for consideration of $2.11 per share in cash. On completion of the Arrangement, it is anticipated that the Common Shares will be delisted from the Toronto Stock Exchange and the NYSE American.
What is the rights offering for PolyMet mining? ›
NorthMet copper-nickel project plant site. (Image courtesy of PolyMet Mining). PolyMet Mining (TSX: POM) has confirmed completion of one of the largest rights offering on the market.
Does Glencore own PolyMet? ›
07, 2023 (GLOBE NEWSWIRE) -- On November 7, 2023, Glencore AG, a wholly-owned subsidiary of Glencore plc (together “Glencore”) acquired all of the issued and outstanding common shares (“Common Shares”) of PolyMet Mining Corp. (“PolyMet”), other than those Common Shares currently held by Glencore.
Who owns PolyMet Mining Corp? ›
Who is Glencore owned by? ›
Glencore Holdings Pty Limited is a wholly owned subsidiary of Glencore plc, a Switzerland-based mining and commodities trading company.
What is the stock price of PolyMet? ›
The Polymet Mining Corp stock price today is 2.1050.
Will PolyMet ever mine? ›
PolyMet's permit to mine says planned mining and reclamation activities will be done in roughly 2072, though long-term maintenance and “active water treatment” will continue indefinitely until state rules on mine closure are met and the need for maintenance has ended.
What are the problems with PolyMet mines? ›
The PolyMet mine would release mercury into the air and water, emit sulfur air pollution, and discharge sulfate to water. Mine operations would excavate, drain, and rewet wetlands.
What does PolyMet want to mine? ›
PolyMet proposes to blast and dig over 500 million tons of waste rock and ore from the ground over 20 years. The PolyMet deposit is a low-grade deposit, with a higher concentration of sulfur than of copper and nickel combined.
Do the Rothschilds own Glencore? ›
Via NR Investments Ltd., his principal investment company, Rothschild was a cornerstone investor in the United Company RUSAL initial public offering in January 2010. At the same time he bought $40 million of Glencore bonds convertible into shares upon an IPO.
In 2020, Glencore Agriculture rebranded to Viterra and created a new brand identity, building off the Viterra brand that was created in 2007. In 2022, Gavilon was purchased by Viterra for $1.1 billion. It is expected Gavilon will be fulling integrated in Viterra by early 2023.
Who owns the most shares in Glencore? ›
Ivan Glasenberg owns the most shares of Glencore PLC (GB:GLEN).
What's going on with PolyMet mining? ›
MINNEAPOLIS (AP) — Swiss commodities giant Glencore moved Monday to take full ownership of PolyMet Mining, a company that's developing a copper-nickel mine in northeastern Minnesota with one of Canada's largest miners, Teck Resources.
What is the richest mining company? ›
BHP Group
It is the world's largest mining company by market cap and one of the top producers of commodities such as iron ore, copper, and petroleum.
Where is the proposed PolyMet mine? ›
The NorthMet Mining Project will be located in the St. Louis River watershed on the eastern edge of the Mesabi Iron Range, about 6 miles south of Babbitt.
How many jobs does PolyMet propose this mine will create? ›
Won't the PolyMet mine create jobs? PolyMet says the project will create about 360 jobs.
How to invest in the mining industry? ›
To purchase gold mining shares, you can invest in the stocks of gold mining companies, or the royalties, as well as gold mining exchange traded funds (ETFs) and mutual funds. As with any investment, carefully evaluate the instrument, such as the financials of a gold mining company and the prospectus and fees of a fund.
