US$30 Million Loan Facility with Glencore Secured by PolyMet Mining

PolyMet Mining Corp. (TSX:POM,NYSEMKT:PLM) subsidiary Poly Met Mining, Inc. entered into a US$30 million loan facility with Glencore AG, a wholly-owned subsidiary of Glencore plc. The Loan Facility is comprised of 4 secured debentures: US$8 million issued January 30, 2015, US$8 million to be issued on or before April 15, 2015, US$8 million to be issued on or before July 1, 2015, and US$6 million to be issued on or before October 1, 2015. The loan facility covers anticipated costs through 2015.

As quoted in the press release:

The Loan Facility comprises four secured debentures issued by Poly Met Mining, Inc. and guaranteed by PolyMet Mining Corp., each debenture due on the earlier of March 31, 2016 or the availability of at least $100 million of construction finance:

• First tranche of US$8 million issued January 30, 2015
• Second tranche of US$8 million to be issued on or before April 15, 2015
• Third tranche of US$8 million to be issued on or before July 1, 2015
• Fourth tranche of US$6 million to be issued on or before October 1, 2015

The interest rate on each of the debentures is 12-month US$ LIBOR plus 8%, reset for each calendar quarter using LIBOR on the last day of the previous quarter. The initial interest rate is 8.6179%. Interest will be paid in cash on the due date.

PolyMet Mining President and CEO, Jon Cherry, said:

This loan facility covers our anticipated costs through 2015 as we work through completion of the final Environmental Impact Statement and subsequent issuance of permits needed to construct and operate NorthMet.

Click here to read the PolyMet Mining Corp. (TSX:POM,NYSEMKT:PLM) press release
Click here to see the PolyMet Mining Corp. (TSX:POM,NYSEMKT:PLM) profile.