Commodity company Glencore has signed a definitive agreement to acquire the remaining 17.8% stake it does not own in PolyMet Mining.

According to the deal, Glencore will acquire all of the remaining issued and outstanding common shares in PolyMet for $2.11 per share in cash.

Glencore currently owns 159 million shares in PolyMet, representing an 82.19% stake.

In a joint venture with Canadian miner Teck Resources, PolyMet owns the NewRange project in the Iron Range mining region of Minnesota, US.

PolyMet Independent Special Committee lead independent director and chair Al Hodnik said: “The necessary next step for the advancement of the NewRange Copper Nickel joint venture and the development of strategic minerals vital to our economy’s clean energy transformation.

“The Special Committee strived to maximise value for our minority shareholders in light of the uncertain permitting environment and associated judicial outcomes, as well as the likely need for further substantial financing to meet the company’s obligations to NewRange.

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“The transaction provides the company’s minority shareholders with an opportunity to realise an attractive cash premium for their shares with limited closing risk.”

PolyMet said the transaction would eliminate uncertainty and risk pertaining to the development of the NewRange project and the generally uncertain macroeconomic environment.

Based on the unanimous recommendation of an independent special committee, PolyMet’s board of directors consider the transaction to be in the best interest of minority shareholders and has unanimously recommended its shareholders vote in favour of the deal.

Planned to be closed in late Q3 or early Q4 2023, the all-cash transaction is subject to certain approvals and other customary closing conditions.