Hoyt Lakes, Minnesota, September 2, 2009 – PolyMet Mining Corp. (TSX: POM; NYSE-A: PLM) (the Company) announced today that it has drawn the fourth tranche (the Tranche D Debenture) of US$5 million under the US$50 million convertible debt facility with Glencore AG, which closed on October 31, 2008 (the Facility). To date, a total of US$25 million has been drawn under the Facility, and US$573,000 of interest has been capitalized.

The floating rate secured debentures due on September 30, 2011 (the Debentures) have been issued by the Company’s wholly-owned Minnesota subsidiary, Poly Met Mining, Inc. (the Issuer), and guaranteed by the Company, and secured by the assets of the Company and the Issuer, including a pledge of the Company’s 100% shareholding in the Issuer. The Debentures bear interest at 12-month US dollar LIBOR (currently 1.61%) plus 4%. The principal amount of the Debentures is exchangeable into common shares of the Company at US$4.00 per share.

As part of the Facility, the Company previously issued to Glencore AG warrants to purchase 6,250,000 common shares of the Company, exercisable at US$5.00 per share prior to the start of commercial production. Upon exchange of the Tranche A Debenture issued on October 31, 2008 in the original principal amount of US$7.5 million, the Tranche B Debenture issued on December 24, 2008 in the original principal amount of US$7.5 million, the Tranche C Debenture issued on June 18, 2009 in the original principal amount of US$5.0 million, and this Tranche D Debenture, together with exercise of the above mentioned warrants and exchange of capitalized interest on the Tranche A, Tranche B, and Tranche C Debentures, Glencore AG would own approximately 12,643,000 shares of the Company, representing approximately 8.4% of the Companys issued capital on a partially-diluted basis.

The funds borrowed by the Issuer will be used to complete critical engineering work and the Environmental Impact Study for the Company’s NorthMet Project.

* * * * *

About PolyMet

PolyMet Mining Corp. (www.polymetmining.com) is a publicly-traded mine development company that controls 100% of the NorthMet copper-nickel-precious metals ore body through a long-term lease and owns 100% of the Erie Plant, a large processing facility located approximately six miles from the ore body in the established mining district of the Mesabi Range in northeastern Minnesota. PolyMet Mining Corp. has completed its Definitive Feasibility Study and is seeking environmental and operating permits to enable it to commence production. The NorthMet Project is expected to require approximately one million man hours of construction labor and create at least 400 long-term jobs, a level of activity that will have a significant multiplier effect in the local economy.

About Glencore

Glencore International AG, based in Baar, Switzerland, is a leading privately held, diversified natural resources company with worldwide activities in the smelting, refining, mining, processing, purchasing, selling and marketing of metals and minerals, energy products and agricultural products.

Glencore AG is a subsidiary of Glencore International AG. Glencore AG, which maintains offices in Stamford, Connecticut, has purchased the debentures from the Issuer and the warrants from the Company in the ordinary course of its business. Glencore AG may from time to time acquire additional securities of the Issuer and/or the Company, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its then current position.

Persons who wish to obtain a copy of the Early Warning Report filed in connection with this transaction may obtain a copy of such report from www.sedar.com or by contacting the person(s) listed below.


Per: Joe Scipioni
Joe Scipioni, President

For further information, please contact:

Douglas Newby
Chief Financial Officer
+1 (646) 879-5970

Crystal Agresti
KCSA Strategic Communications
+1(212) 896-1273


Marc Ocskay
Glencore International AG
Tel: +41 41 709 2000
Fax: +41 41 709 3000

This news release contains certain forward-looking statements concerning anticipated developments in PolyMet’s operations in the future. Forward-looking statements are frequently, but not always, identified by words such as expects, anticipates, believes, intends, estimates, potential, possible, and similar expressions, or statements that events, conditions or results will, may, could, or should occur or be achieved. These forward-looking statements may include statements regarding exploration results and budgets, reserve estimates, mineral resource estimates, work programs, capital expenditures, timelines including timelines for third-party studies and issuance of permits to operate by various government agencies, strategic plans, the market price of metals, costs, or other statements that are not a statement of fact. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements due to a variety of risks, uncertainties and other factors. PolyMet’s forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and PolyMet does not assume any obligation to update forward-looking statements if circumstances or managements beliefs, expectations and opinions should change.

Specific reference is made to PolyMet’s most recent Form 20-F/Annual Information Form on file with the SEC and Canadian securities authorities for a discussion of some of the risk factors and other considerations underlying forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Back to News Releases