PolyMet and Glencore Agree to Extend Term of Convertible Debentures

PolyMet Mining Corp (TSX:POM)(NYSE MKT:PLM) announced that it has renegotiated its convertible debentures with Glencore AG, a wholly-owned subsidiary of Glencore plc to extend the maturity date of the outstanding securities issuable under the debenture financing.
As quoted in the press release:

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.
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.)

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.”

Click here for the full PolyMet Mining Corp (TSX:POM)(NYSE MKT:PLM) press release.