Mining giant Glencore has submitted a non-binding offer to PolyMet Mining to purchase the outstanding common shares it does not already own in the latter for $2.11 per share.

The bid price is at par with PolyMet's rights offering in April 2023. It marks a nearly 167% premium over the company’s stock close on 30 June 2023.

The offer is subject to the execution of a definitive deal, along with clearance from PolyMet’s shareholders.

Glencore currently owns 159 million shares in PolyMet, representing a stake of nearly 82.19%.

Glencore also holds a purchase warrant, according to which it is entitled to acquire 811,190 shares at $5.87 apiece. If the company exercises this warrant, it will own more than 160 million common shares, increasing its stake to 82.26%.

Currently, PolyMet’s independent Special Committee is reviewing Glencore’s proposal.

In a statement, it said: "PolyMet cautions its shareholders and others considering trading in its securities that no decisions have been made with respect to PolyMet’s response to the proposal.

"There can be no assurance that any definitive offer will be made, that any definitive agreement will be executed or that this or any other transaction will be approved or consummated.”

Earlier this year, PolyMet completed the formation of the previously announced NewRange Copper Nickel joint venture (JV) with Teck Resources. PolyMet and Teck each hold a 50% stake in the JV.

According to NewRange Copper Nickel, the NorthMet and Mesaba deposits containing high-demand copper, nickel, cobalt and platinum group metals now come under the management of the JV.

The two mines are said to contain nearly 702 million tonnes and 2,207 million tonnes for NorthMet and Mesaba, respectively.