PolyMet Updates Status of Environmental Review
HOYT LAKES, MINNESOTA--(Marketwire - 05/31/11) PolyMet Mining Corp. (TSX:POM - News)(AMEX:PLM - News) ("PolyMet" or the "Company") reported today on the status of the environmental review of its NorthMet copper-nickel-precious metals project located in northeastern Minnesota.
The air, wetlands and geotechnical modeling and evaluations required for the supplemental draft Environmental Impact Statement ("EIS") are now well defined and modeling has started.
Finalization of input parameters for water modeling is underway. The water models have been constructed to the extent possible so that model runs can begin soon after these input parameters are finalized.
The overall schedule to publish the supplemental draft EIS in the fall of 2011 is intact but does require finalization of the groundwater modeling parameters in the near future. The lead agencies - Minnesota Department of Natural Resources (DNR), US Forest Services (USFS) and US Army Corps of Engineers (USACE) - are working diligently with other government agencies, including the US Environmental Protection Agency ("EPA"), to prepare the supplemental draft EIS.
In separate news, the Company confirmed today the auditors' report received from its independent public accounting firm on its audited financial statements for the fiscal year ended January 31, 2011 (the "Annual Financial Statements") contained an "Emphasis of Matter" disclosure in connection with a going concern explanatory note. PolyMet's Annual Financial Statements were included in its Form 20-F filed with the Securities and Exchange Commission.
The going concern note stated that, "In order to meet all of its obligations for the period to January 31, 2012, including paying off the current portion of its long-term debt, PolyMet Mining Corp. will have to successfully receive all of the remaining equity tranches (from Glencore), or obtain alternative financing.
Management is in the latter stage of discussions with Glencore with respect to the budget and believes that agreement will be reached by June 30, 2011, which will enable the Company to access the second and third $10 million tranches of the equity funding in a timely manner that will enable it to meet its obligations."
