Glencore Proposes To Buy Remaining Stake In PolyMet Mining For $2.11/share In Cash

(RTTNews) - Swiss mining company Glencore plc (GLEN.L) announced that its unit Glencore AG on June 30 submitted a non-binding proposal to acquire the remaining shares in PolyMet Mining Corp. (PLM) that it does not currently own.

In pre-market activity, PolyMet shares were gaining around 124.05 percent to trade at $1.77.

Under the proposal, each PolyMet Share would be acquired for consideration of $2.11 in cash, which is at par with the recent Rights Offering done by PolyMet in April 2023.

The proposal is subject to the negotiation and execution of definitive transaction documents and customary approvals. These include approval of a majority of PolyMet's shareholders not affiliated with Glencore.

Glencore currently holds 159.81 million shares of PolyMet, representing around 82.19 percent of the issued and outstanding Common Shares. Glencore also holds a purchase warrant, pursuant to which it is entitled to purchase 811,190 Common Shares at an exercise price of $5.87 per Common Share.

Assuming exercise of the 2019 Warrant, the company would hold a total of 160.62 million shares, representing around 82.26 percent of stake in PolyMet.