From the Shaeffer Report. Very bullish.....
PolyMet Mining POM - VSE
PolyMet is finalizing plans for a financing to fund its ongoing testing and upcoming drill campaign, among other things. The good news about this financing is that accredited U.S. investors can participate. If you meet the requirements, we urge you to get involved in the private placement. These opportunities don't come along often, so it's wise to jump on them when they're available. Especially since PolyMet remains one of our best buys. And it's still early daysówe expect big gains over the next year. The company will almost certainly be able to raise all the money it needs, and maybe more, to carry its business plan through toward its completion.
The financing consists of two distinct parts, which differentiate the Canadian from the U.S. placements, and is intended to raise up to C$5 million. The proceeds will be raised through the sale of special warrants at C$2 per warrant. Each warrant will be exchangeable into one common share and one half share purchase warrant. There is a four month hold on trading of the common shares once the warrants are exercised. Union Securities will broker the private placement.
U.S. investors must be accredited in order to participate, verifying that they meet minimum net worth and income requirements. In this case, investors will be required to provide information (via questionnaire) in order to be eligible for the private placement. The U.S. version of the financing is a parallel, non-brokered private placement, meaning the compensation for the broker will be structured differently.
For more information on the private placement contact Bruce Reid at Union Securities: 711-69 Yonge Street; Toronto, ON M5E 1K3; Tel: 416 777-0369; Fax: 416 777-0619
An update on the bioleach metallurgical testing scheduled for the end of May should be out within the first two weeks of June. Later in the month, depending on the test results, the company will select a metallurgical process; either bio leach, pressure oxidation or a combination of the two.
Drilling is scheduled to begin in July and continue through the fall and into winter. Approximately 30% of the capital raised in the current financing will be spent on the drill campaign. The next step will then be to prove up reserves from indicated to measured and then reserve category. Finally, the mine engineering and design and pre-feasibility study will be completed in the first quarter of 2000.
PolyMet Mining, 13949 West Colfax Avenue, Building One, Suite 205; Golden, CO 80401; Phone: 877-233-4831; Fax: 303-233-4832; Website: polymetmining.com. For more information regarding the financing contact Leslie Landefeld at the numbers above.
|
