Glencore PLC extended a looming deadline on US$152 million in loans that was bearing down PolyMet Mining Corp. and agreed to lend the junior US$80 million to fund ongoing permitting-related work at the NorthMet copper project in Minnesota.
In a March 26 press release, PolyMet said the US$152 million in secured convertible and non-convertible debentures would now come due a year later on March 31, 2019, and that Glencore also agreed to cut the interest rate to the London Interbank Offered Rate plus 10% instead of 15%.
Meanwhile, PolyMet secured US$80 million in debentures from Glencore on the same terms as the existing nonconvertible debt, which it can draw down in five tranches. Polymet also issued Glencore new warrants to replace old ones that expired at the end of 2017.
PolyMet noted that it is waiting for final decisions on key permits it needs to secure to build the NorthMet project.
NorthMet hosts total reserves of 254.7 million tons grading 0.294% copper and 0.084% nickel.