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(Wallace Refiners) – Imperial Metals (TSX:III) announced Tuesday that it will conduct a rights offering to raise net proceeds of up to approximately C$60.2 million, through the issuance of rights to subscribe for an aggregate of 12,853,267 common shares of the company at a subscription price of C$4.70 per common share.
The company said that the following insiders have agreed to exercise all of their rights and to cause their affiliates to do so: N. Murray Edwards, a significant shareholder of the company; Brian Kynoch, the president of the company; and Larry Moeller, a director of the company. The rights to be issued to the committed insiders and their affiliates represent approximately 45.2% of the rights offering.
The company added it intends to use a significant portion of the proceeds from the rights offering on its portion of the operating and capital expenditures at the Red Chris mine, general working capital purposes and to repay its short term debt.
The Red Chris copper/gold mine located in northwest British Columbia, 80 km south of Dease Lake. Red Chris 2020 metals production was 88.3 million pounds copper and 73,787 ounces gold. In August 2019, Imperial and Newcrest Mining formed a joint venture for the operation of the Red Chris mine, with Newcrest acting as operator. Imperial retains a 30% joint venture interest, and Newcrest holds a 70% interest.
Imperial is a Vancouver based exploration, mine development and operating company. The company, through its subsidiaries, owns a 30% interest in the Red Chris mine, and a 100% interest in both the Mount Polley and Huckleberry copper mines in British Columbia.
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