Polymet Mining Corp (PLM)

[tdbowieknife]

The news from the 14th...

St. Paul, Minn., February 14, 2022 - PolyMet Mining Corp., TSX: POM; NYSE American: PLM, and its wholly owned subsidiary Poly Met Mining, Inc. (together "PolyMet" or the "company") announced today it has entered into a subscription agreement for the issuance of unsecured convertible debentures (the "debentures") of up to USD$40 million with Glencore AG, a wholly-owned subsidiary of Glencore plc (together "Glencore").

"In the coming months we expect to transition from litigation to project finance and preparation for construction; these funds will support that effort as we move forward," said Jon Cherry, chairman, president and CEO. "The funds will provide the resources we need to work through remaining litigation and advance the project. We appreciate Glencore's continuing support and significant investment in copper-nickel-precious metals mining in Minnesota."

Cherry cited as recent examples of significant progress for the project the re-instatement of the air permit by the Minnesota Pollution Control Agency and the ruling affirming key aspects of the water discharge permit for the NorthMet Project by the Minnesota Court of Appeals including a finding that water quality standards of the State of Minnesota will not be violated as a result of the permitted project.

The NorthMet mine will feed a critical supply chain to meet the growing demand for copper, nickel, cobalt and other metals needed for the U.S. and global transition to clean energy technologies such as solar arrays and wind turbines, battery storage and electric vehicles, Cherry said. Most of the known resources of nickel and cobalt in the U.S. are found in Minnesota, according to the U.S. Geological Survey.

The debentures will be issued in four tranches throughout 2022, all of which are due on March 31, 2023. Interest will accrue on the unsecured debentures at 4% per annum on the balance drawn. The company also agreed to pay a facilitation fee of 5% of the principal amount plus interest of each convertible debenture.

The principal amount of the debentures is convertible into common shares of the company at a conversion price equal to USD$2.57, which represents the five-day volume weighted average price on the NYSE American at the time of issue. The first tranche in the amount of USD$26.0 million was issued on February 14, 2022, with approximately USD$18 million used to repay the promissory note maturing February 28, 2022. The remainder of the funds will be used for general working capital purposes of the company.

https://www.sec.gov/Archives/edgar/data/866028/000106299322004370/exhibit99-1.htm



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