PolyMet Mining plans to raise $265 million in a stock offering to existing shareholders, a move mainly intended to pay off debt to the company’s longtime backer, mining and commodities giant Glencore.
Depending on how the offering shakes out, Glencore may end up with majority ownership of PolyMet, which plans to develop Minnesota’s first copper-nickel mine. Switzerland-based Glencore already owns 29% of PolyMet.
In March, the U.S. Army Corps of Engineers granted PolyMet the last major permit it needs to proceed with the controversial project on the eastern Iron Range. PolyMet still faces several legal challenges to the mine and processing plant, and it must raise money for the $1 billion project.
PolyMet on Tuesday filed a preliminary rights offering prospectus with securities regulators in the United States and Canada. The company is based in Toronto, but its CEO works out of St. Paul and its reason-to-be is the Minnesota mine.
Under the rights offering, PolyMet stockholders would receive the right to buy one common share for every share they own. Final pricing hasn’t been determined, but the rights price will represent a 20% discount off the “volume weighted average price” for the five trading days before the final prospectus is filed.
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