PolyMet Reports Financial Results for 2014

PolyMet Mining Corp. (TSX:POM,NYSEMKT:PLM) filed its financial results for the year ended January 31, 2014. The Company also announced a one year extension to September 30, 2015 for the convertible debentures originally issued in 2008 to Glencore AG.

As quoted in the press release:

Financial Highlights

Loss for the year ended January 31, 2014 was $8.132 million compared with $6.626 million for the prior year period. General and administrative expenses excluding non-cash stock-based compensation in the year ended January 31, 2014 were $4.957 million compared with $3.653 million in the prior year period, excluding non-cash stock based compensation.
Shareholder, investor and public relations expenditures increased to $2.075 million from $0.571 million in the prior year period largely owing to increased public relations activities associated with the supplemental draft Environmental Impact Statement and investor relations activity associated with the $60.5 million rights offering completed in July 2013.
At January 31, 2014 PolyMet had cash and cash equivalents of $32.790 million compared with $8.088 million at January 31, 2013.
PolyMet invested $25.324 million into its NorthMet project during the year ended January 31, 2014, compared with $18.404 million in the prior year period, which included $2.092 million for purchase of wetland restoration properties.
On April 25, 2014 PolyMet and Glencore, agreed (subject to approval of listing the additional shares from the NYSE MKT and the Toronto Stock Exchange) to extend the maturity of the convertible debt by up to a year to the earlier of the Early Maturity Event (receipt of permits necessary to start construction of the NorthMet project and availability of senior construction finance, in a form reasonably acceptable to Glencore) and September 30, 2015 from the earlier of the Early Maturity Event and September 30, 2014. As such, $31.967 million convertible debentures, which were a current liability at January 31, 2014, are now a long-term liability. PolyMet can trigger conversion of the debt to equity upon the Early Maturity Event.
As of January 31, 2014 PolyMet had spent $68.357 million on environmental review and permitting, of which $61.866 million has been spent since the NorthMet project moved from exploration to development stage.

PolyMet Mining CFO, Douglas Newby, said:

The debentures are convertible at a set price of US$1.2920 per share upon receipt of permits and construction finance. The extension reflects continued support from our largest shareholder and does not impact our anticipated schedule for permits in spring 2015. Following the very good rating from the US EPA on the project Supplement Draft EIS last month, our focus continues to be completion of permitting, securing construction finance, and completing pre-construction engineering and construction planning.

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