Mining Co. Forms Joint Venture to Manage Key NewRange Materials Assets

Shares of PolyMet Mining Corp. traded nearly 8% higher after the company announced it had entered into a joint venture agreement with Teck Resources Ltd. to develop resources of copper, nickel, cobalt and platinum group metals on the NorthMet and Mesaba properties in Minnesota.

Minnesota mining company PolyMet Mining Corp. (POM:TSX; PLM:NYSE.MKT), today announcement “it has entered into an agreement with Teck American Inc., a subsidiary of Teck Resources Ltd., to form a 50:50 joint venture (JV) that will place their respective NorthMet and Mesaba resources containing copper, nickel and cobalt at high demand and platinum group metals (PGMs) under single management.”

The company said NorthMet has a measured and indicated (M&I) resource of 795 Mt (million tonnes) and additional inferred resources of 458 Mt. The company said Mesaba has an M&I resource of 1,740 Mt as well as additional inferred resources of 1,612 Mt.

Under the terms of the joint venture agreement, PolyMet and Teck will each hold equal shares in PolyMet Mining Inc., which will be renamed NewRange Copper Nickel LLC.

PolyMet Mining Corp. will continue to operate as a public company, so that after the creation of the new joint company, investors will have direct access to make investments in NewRange Copper Nickel through ownership of shares in PolyMet Mining Corp.

PolyMet Mining Chairman, President and CEO, Jon Cherry, said, “This extraordinary venture combines the expertise, experience and financial resources of PolyMet, Teck and Glencore to develop the NorthMet mine when mining procedures remaining permits will be completed, and to explore mine development options for Mesaba… Following the closing of the transaction, Glencore will retain its majority stake in PolyMet.”

Cherry continued, “With the two projects representing approximately half of the known resources of Minnesota’s Duluth Complex under NewRange Copper Nickel, Minnesota is emerging as a global leader and major force in the development of strategic minerals to fuel the supply chain. North American for clean energy technologies, electric mobility and modern societal use.”

Cherry noted that together the NorthMet and Mesaba deposits represent one of the largest clean energy mineral resources in the world and added that “successful completion of this transaction is expected to more than double the resources attributable to PolyMet shareholders.”

The company said it successfully maneuvered the NorthMet project through a lengthy and complex regulatory review process to obtain the necessary permits to build and operate the 32-acre mine and processing facility. 000 tpd. The company is currently working to obtain the last three necessary permits for the site.

The company said Teck’s Mesaba project is now progressing with environmental studies, resource definition and mineral processing assessments.

The company said Glencore International Plc (GLNCY: OTCMKTS) has agreed to provide funding of up to US$105 million for PolyMet’s share of the initial work program and related expenses. It is further expected that upon closing of the joint venture, PolyMet will undertake a rights offering which will be fully supported by Glencore.

The company said its board of directors unanimously approved the joint venture agreement which remains subject to ordinary closing conditions and regulatory approval.

PolyMet is a resource development company headquartered in St. Paul, Minnesota, focused on mining copper, nickel and precious metals on its NorthMet property near Hoyt Lakes, Minnesota. The company noted that its wholly-owned NorthMet project is the first large-scale project in the Duluth complex to receive permits in what is considered to be one of the major undeveloped mining regions for copper, nickel and MGP. The company asserted that NorthMet offers a significant amount of proven and probable reserves of copper, nickel and palladium as well as marketable quantities of cobalt, platinum and gold.

Glencore Plc. is one of the world’s largest diversified natural resource companies with a market capitalization of over US$67 billion (billion). The company is engaged in all phases of the production, refining, processing, storage, transportation and marketing of metals, minerals and energy products globally. The company operates in over 35 countries and, including contractors, employs over 135,000 people worldwide. Glencore owns over 72 million common shares of PolyMet common stock, which equates to an approximate 71.0% equity interest in the company.

PolyMet Mining started the day with a market capitalization of around $278.0 million with around 101.5 million shares outstanding. PLM shares opened 2.5% higher today at $2.81 (+$0.07, +2.55%) from yesterday’s closing price of $2.74. The stock traded between $2.80 and $3.17 per share today and closed at $2.95 (+$0.21, +7.66%).


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