PolyMet Mining Corp needs additional funding to meet all its obligations for the next eight months.

According to a going-concern note included in PolyMet’s audited financial statements for the fiscal year that ended January 31st 2011, in order to meet all of its obligations for the period to January 31, 2012, including paying off the current portion of its long-term debt, PolyMet Mining Corp will have to successfully receive all of the remaining equity tranches (from Glencore), or obtain alternative financing.”

PolyMet announced in November that Glencore a Swiss natural resources firm would buy 15 million shares at USD 2 each in three stages. The last stage is to conclude when PolyMet receives key permits or by October 15th 2012, whichever comes first.

The PolyMet project still is in the environmental-impact-statement phase. The company hopes to receive needed permits in summer 2012.

PolyMet in a news release said that “Management is in the latter stage of discussions with Glencore with respect to the budget and believes that agreement will be reached by June 30th 2011, which will enable the Company to access the second and third USD 10 million tranches of the equity funding in a timely manner that will enable it to meet its obligations.”

Also in November, PolyMet and Glencore announced changes to a previous financing agreement. Under the new agreement, Glencore extended the maturity date on USD 25 million in unsecured loans from September 30th 2011, to September 30th 2012.

The revised agreement also canceled Glencore’s commitment to buy a USD 25 million loan certificate and 6.25 million common shares of PolyMet at USD 3 each. Glencore may now buy 3 million common shares at USD 2 each at any time until December 31st 2015.

(Sourced from News Tribune staff, Duluth News Tribune)