Diversified mining major Glencore has made a move to acquire the rest of PolyMetal, a mine developer that owns a 50:50 joint venture (JV) with Teck Resources in Minnesota, US.
The commodities trader and miner has offered to acquire all the outstanding shares of PolyMet that it does not already own for $2.11 a share, which is a 167% premium over its price of $0.79 a share at the close of business on Friday.
PolyMet “welcomed” the engagement with Glencore, which already owns 82% of its shares, and says it is reviewing the proposal.
With global demand for these metals on the rise, Glencore has been seeking secure a more significant stake in the burgeoning market. The Swiss-headquartered group has been trying to clinch a deal with Canadian base metals and coal company Teck.
PolyMet owns 50% in NewRange Copper Nickel, a JV with Teck. NewRange holds the NorthMet and Mesaga copper, nickel, cobalt and platinum-group metal deposits in north-east Minnesota.
Once developed, the NorthMet project will be a 32 000 t/d mine and mineral processing facility.