Glencore Offers To Buy PolyMet Mining For US$2.11 A Share
Switzerland-based Glencore appears to be doing what it can to get closer with Teck Resources (TSX: TECK.B) following its failed bid earlier this year. Yesterday, it was revealed that PolyMet Mining (TSX: POM), whom operates a 50% joint venture with Teck, has received a non-binding proposal to be acquired by the Swiss mining giant.
PolyMet’s main asset is a 50% interest in NewRange Copper Nickel LLC, which is a joint venture with Teck Resources. The venture holds both the NorthMet and the Mesaba deposits in northeast Minnesota, which contain copper, nickel, cobalt, and platinum group metals. The deposits collectively consists of 2,309 million tonnes of measured and indicated resources.
Notably, Glencore is a strategic partner of the company, being the principal shareholder. As of its latest filing, Glencore owned 159.8 million shares of the company, with just 194.5 million shares outstanding.
READ: After Two Rejected Offers, Glencore Now Wants Teck Resources’ Steelmaking Coal Unit
The proposed go-private transaction has seen Glencore offer to pay US$2.11 for each share of PolyMet that it does not already own, subject to certain conditions. The offer represents a 167% premium to the prior close of the company, which was just US$0.79 per share.
PolyMet is said to be reviewing the offer via a special committee.
PolyMet last traded at $1.04 on the TSX.
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