PolyMet Mining Corp. announced preliminary results of its $265 million rights offering following the expiration of the subscription period on Wednesday. Based on the preliminary results, Glencore AG will own approximately 71.66 percent of the company’s common shares on a non-diluted basis.

Opponents of the non-ferrous mine quickly condemned the development.

"Glencore’s worldwide record of environmental disasters, violations of human rights and disregard for workers and labor rights speaks for itself," said Kathryn Hoffman, Chief Executive Officer of the Minnesota Center for Environmental Advocacy. "With former BP CEO Tony Hayward at the helm of Glencore, Minnesota may soon face our own version of the Gulf oil spill. The terrible record of Glencore and its leaders should concern every Minnesotan."

Preliminary results indicate that 118,270,070 basic subscription rights and 747,550 additional rights were exercised as of the expiration date to purchase an aggregate of approximately 252,206,551 common shares of the company, which includes the exercise of basic subscription rights and additional subscription rights by Glencore. The common shares were purchased at 38.8 cents per share.

Glencore agreed to exercise its basic subscription right in full and to purchase all unsubscribed common shares in the rights offering. In a news release, PolyMet said it obtained the standby commitment from Glencore to ensure that the rights offering would be fully subscribed and that the company will raise US$265 million in gross proceeds from the rights offering.

The company intends to use the net proceeds for the repayment of debt to Glencore.

“We thank all of our shareholders for their interest in and support for this project, and are grateful to those who participated in this rights offering,” said Jon Cherry, president and CEO, “The issuance of the federal wetlands permit in March, which brought the project to a fully permitted status, and clearing our balance sheet of debt with this rights offering puts us in a much stronger position to obtain construction financing for the project. We could not have achieved either one of these major milestones without Glencore’s longstanding technical and financial support.”

Subscription rights that were not exercised expired and are void and have no value, 

Annual shareholders meeting results

At PolyMet's Annual General Meeting of Shareholders, all motions put forward by the company were passed at the meeting.

The number of directors of the company was fixed at nine.