PolyMet Announces Filing of Final Prospectus and Terms for Rights Offering - Seite 2

The company intends to use the proceeds of the Rights Offering for: (a) the repayment of the amount that the company is indebted to Glencore under certain debentures which, as at March 31, 2019, is the principal amount of US$165,000,000 plus accrued interest of US$77,774,753, plus additional interest which continues to accrue; (b) the payment of the Standby Fee in full; and (c) payment of expenses of the Rights Offering, which expenses shall be no greater than US$6,000,000.

“Proceeds from the rights offering, which is fully back stopped by Glencore, will be used to pay off our outstanding debt. This strengthening of our balance sheet will help clear the pathway to construction financing for the NorthMet Project, a process which is likely to take several months,” said Jon Cherry, president and CEO. “Work is currently underway to advance project planning and development, which was helped considerably by the issuance of the federal wetlands permit in March, which brought the project to a fully permitted status.

“As one of the world’s leading mining companies and our largest shareholder, we appreciate Glencore’s longstanding technical and financial support of the project,” Cherry said. “We look forward to working with Glencore to establish Minnesota’s first copper-nickel mine.”

By virtue of its 28.8 percent shareholding in PolyMet, Glencore is a related party to the company, and the Rights Offering, as a result of the Standby Commitment, is a related party transaction pursuant to Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions ("MI 61-101"). However, the Rights Offering is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to section 5.1(k)(ii) of MI 61-101.

Rights Offering Details

What is a Rights Offering?

In a Rights Offering, all eligible shareholders on the Record Date get the same pro rata right to participate in the financing on the same terms.

How many common shares will I be able to subscribe for and what will it cost?

For each common share you hold on the Record Date you will receive one Right. For every Right, you will be able to subscribe for 2.119069 new common shares (subject to applicable law) at US$0.3881. For example, if you own 1,000 shares, you will receive 1,000 rights which allow you to subscribe for 2,119 new common shares for a total cost of US$822.38.