The board of Toronto-listed PolyMet Mining has recommended minority shareholders vote in favour of the $2.11-a-share proposal from majority shareholder Glencore, stating that the offer is in their “best interest”.
A fairness opinion was sought from financial adviser Paradigm Capital and from independent valuator Maxit, both of which determined that the consideration was fair, from a financial point of view to minority shareholders.
A special meeting of shareholders will be held on November 1 to consider a resolution to approve the arrangement.
The PolyMet board noted that the cash consideration provided minority shareholders with certainty of value and immediate liquidity.
“The arrangement crystalises value for minority shareholders and removes uncertainty and risk around the development of the mineral assets of NewRange Copper Nickel,” the company stated.
NewRange is PolyMet’s 50:50 joint venture with Teck Resources. NewRange holds the NorthMet and Mesaba copper, nickel, cobalt and platinum group metal deposits, two globally significant clean energy mineral resources located in the Duluth Complex in northeast Minnesota.