Glencore to acquire full ownership in PolyMet Mining
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(Kitco News) - PolyMet Mining (TSX: POM) (NYSE: PLM) announced today that it has entered into a definitive agreement with Glencore in respect of a transaction whereby Glencore will acquire approximately 17.8% of the issued and outstanding common shares of the company that Glencore does not currently own for US$2.11 in cash per share.
The company said that the consideration represents a 167% premium to the unaffected share price on June 30, 2023, being the last trading day prior to the announcement of Glencore's non-binding proposal to acquire PolyMet.
“The transaction provides the company's minority shareholders with an opportunity to realize an attractive cash premium for their shares with limited closing risk. As such, the transaction is unanimously recommended by the independent Special Committee of the company and the Board (excluding conflicted directors),” it added.
PolyMet is a mine development company holding a 50% interest in NewRange Copper Nickel, a joint venture with Teck Resources. NewRange Copper Nickel holds the NorthMet and Mesaba copper, nickel, cobalt and PGM deposits located in the Duluth Complex in northeast Minnesota. The Duluth Complex is one of the world's major, undeveloped copper, nickel and PGM metal mining regions.
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 60 commodities.