Imperial Announces Unbrokered Private Placement of $45 Million Convertible Notes, Canadian Business Journal

VANCOUVER, British Columbia, August 5, 2022 (GLOBE NEWSWIRE) — Imperial Metals Corporation (the “Company”) (TSX:III) intends to secure additional financing for the reopening of its Mount Polly mines through an unbrokered private placement of $45 million aggregate principal amount of convertible notes (the “Convertible Notes”) announced. ).

The Mount Polley mine is currently operating at target production rates. However, the restart took longer than planned due to operational staff recruitment difficulties, supply chain challenges and unforeseen electrical and mechanical work. This, combined with falling copper prices, caused a shortfall in earnings compared to the budget. Additionally, rights offerings were not fully underwritten, resulting in a lack of in-budget equity financing. For these reasons, the Company is currently seeking additional financing through convertible debenture financing.

The week after major electrical repairs on July 27thththe concentrator produced concentrate containing about 336,000 pounds of copper and 550 ounces of gold against a budget in the first week after opening of 188,403 pounds of copper and 495 ounces of gold.

The term of the convertible bonds is five years, ending on August 31, 2027. Each $3.20 principal amount is convertible into one share of our common stock. The convertible debentures are not redeemable unless the closing price of the company’s common stock exceeds 140% of the conversion price for at least 30 consecutive days. Interest at 8% per annum is paid semi-annually in cash, with the first payment due on 28 February 2023.

The conversion premium on the common stock price under the convertible notes is approximately 13.89% of the volume-weighted average trading price of the common stock on TSX for the five-day period ending August 5, 2022. All issuable convertible debentures of up to 14,062,500 shares of common stock will be issued, if converted into common stock of the Company, subject to final terms and approval from TSX. The company’s largest shareholder, N. Murray Edwards, has indicated his intention to purchase the convertible notes at a price of $30 million to $35 million.

Certain related parties are involved in the issuance of convertible debentures (such terms are defined in Multilateral Document 61-101 – Protection of Minority Shareholders in Special Transactions (“MI 61-101”)), including Mr. Edwards constituting a related party transaction under MI 61-101. These transactions are exempt from the formal evaluation requirements of Section 5.4 of MI 61-101 and the minority shareholder approval requirements of Section 5.6 of MI 61-101. This is neither the fair market value of convertible bonds issued to related parties nor the consideration for such. Convertible bonds represent over 25% of our market capitalization.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor does it constitute a sale of convertible debentures in any jurisdiction in which such offer, solicitation or sale prior to registration or qualification would be unlawful. the securities laws of such jurisdiction;

About Imperial

Imperial is a Vancouver-based exploration, mine development and operation company that owns Mount Polly Mine (100%), Huckleberry Mine (100%) and Red Chris Mine (30%). Imperial also has a portfolio of 23 greenfield exploration properties in British Columbia.

company contact

Brian Kinnock | | president | | 604.669.8959
Darb Dillon | Chief Financial Officer | 604.669.8959

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release is a “forward-looking” statement rather than a statement of historical fact. Forward-looking statements relate to future events or future performance and reflect our management’s expectations or beliefs regarding future events, including maintenance issues and costs associated with reopening the Mount Pauley mine. including, but not limited to, statements regarding our expectations regarding our plans. ; budget subscriptions to recent rights offerings; The issuance of convertible debentures includes expected terms, interest payments and expected purchasers.

In some cases, forward-looking statements may be called “plans,” “expects,” “does not expect,” “anticipates,” “outlooks,” “budgets,” “plans,” “projections.” will, “predict,” “intend,” “predict,” “do not predict,” or “believe,” or that a particular action, event, or outcome “could,” “could” variations of the word or phrase or statement, “will”, “may”, “will be taken”, “occurs”, “achieves”, or the negative forms of any of these terms, or Equivalent terms. Forward-looking statements, by their nature, involve known and unknown risks, uncertainties, and our actual results, performance, or achievements as expressed or implied by the forward-looking statements. or other factors that could cause results to differ materially. The statement you are looking for.

In preparing the forward-looking statements in this news release, we apply certain factors and assumptions based on information currently available to us and our current beliefs and assumptions. These factors and assumptions, beliefs and assumptions include the assumption that the private placement of the convertible debentures will be completed on the terms announced and the risks detailed in the company’s interim and annual financial statements and management’s discussion and analysis from time to time. Includes factors. All of these statements are on file and can be found in his SEDAR at Although we have attempted to identify important factors that could cause our actual actions, events or results to differ materially from those set forth in the forward-looking statements, the actions, events or results There may be other factors that cause results to be different than expected, estimated or different. Many of which are beyond our ability to control or predict. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements, and all forward-looking statements in this news release are qualified by these cautionary statements.

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Imperial Announces Unbrokered Private Placement of $45 Million Convertible Notes, Canadian Business Journal

Source link Imperial Announces Unbrokered Private Placement of $45 Million Convertible Notes, Canadian Business Journal

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