Pepco Holdings (POM) Expands Private Placement to ~26M Units

October 12, 2016 7:23 AM EDT

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PolyMet Mining Corp. (NYSE: PLM) announced that it has expanded its previously-announced private placement to approximately 26 million Units (the "Units"), at a price of US$0.75 per Unit for gross proceeds of approximately US$19.5 million in a private transaction that is exempt from the registration requirements of the Securities Act of 1933 as amended (the "Offering"). Each Unit will consist of one common share (a "Common Share") and one half of one Common Share purchase warrant (each whole warrant a "Warrant"), exercisable for one Common Share (a "Warrant Share") for US$1.00 per Warrant Share for a period beginning 6 months following the issue date and ending 60 months after the issue date, subject to acceleration in certain circumstances.

In addition, one shareholder has informed PolyMet that it intends to exercise its right to maintain its pro rate share of the total number of Units sold and will purchase an additional approximately 14 million Units for gross proceeds of approximately US$10.5 million.

The underwriter for the Offering has placed 22 million Units for US$16.5 million, including the previously announced 10 million Unit bought deal, and PolyMet has commitments for approximately an additional 4 million Units for US$3.0 million.

The Offering is expected to close on or about October 18, 2016 and is subject to PolyMet receiving all necessary regulatory approvals. All securities issued in connection with the Offering will be subject to a four month hold period in Canada.

PolyMet will issue final details after each tranche closes.

The Company intends to use the net proceeds from the Offering primarily to advance its NorthMet Project, for working capital, and general corporate purposes.

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