Here's the annoucementPolyMet Mining Corp.'s U.S. subsidiary has completed acquisition of selected parts of the former LTV Steel Mining Company (LTVSMC) ore processing facilities in northeastern Minnesota that were optioned from Cliffs Erie LLC, a subsidiary of Cleveland-Cliffs Inc., as originally reported in Stockwatch on Sept. 14, 2005.
Closing on the asset purchase agreement was completed today by the parties in Minneapolis, Minn.
The plant assets now owned by PolyMet include crushing, milling and flotation capacity, complete spare parts, plant site buildings, real estate, tailings impoundments, and mine work shops, as well as access to the extensive mining infrastructure near Hoyt Lakes, Minn.
"Acquisition of this large complex provides PolyMet with about 80 to 85 per cent of the physical plant assets needed to develop the NorthMet project. Moreover, this acquisition will save nearly $200-million (U.S.) in capital development costs," said William Murray, PolyMet's president and chief executive officer.
"The company currently estimates total capital costs of $225-million (U.S.) to $250-million (U.S.), with a planned start-up of commercial operations within the first half of 2008," Mr. Murray said.
At the closing, PolyMet issued to Cliffs Erie LLC 6,200,547 shares in the capital of PolyMet. In accordance with current securities laws, such shares are not transferable for four months. PolyMet retains a first right to buy back or place the shares under the agreement.