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On January 1, 2002 Imperial acquired all the mining assets and personnel of the old Imperial Metals Corporation pursuant to the Plan of Arrangement under the Company Act of British Columbia and the Companies' Creditors Arrangement Act. Upon completion of the reorganization, virtually all the debt on the balance sheet was project debt, non-recourse to Imperial. Imperial's share capital was consolidated on the basis of one common share for each 10 common shares, resulting in 15,769,170 issued and outstanding common shares as at March 31, 2002. On April 25, 2002 the Company's common shares listed for trading on the Toronto Stock Exchange under the symbol "III".
Corporate Reorganization documents:
Information Circular with respect to proposed Plan of Arrangement, January 18, 2002  (2.8 MB)
Final Order, March 8, 2002 (108 K)
Interim Order, January 18, 2002 (1.3 MB)
Initial Order, November 23, 2001 (1.4 MB)
Allocation of Adjusted Cost Base
The reorganization of Imperial Metals Corporation as outlined in the Company's Information Circular dated January 18, 2002 was completed in late April 2002. Shareholders of the old Imperial (IPM) at April 24, 2002 had their shares consolidated on a basis of 1 for every 10 common shares held. After consolidation, shareholders received one share in each of the new Imperial (III) and IEI Energy Inc. (IEN).
One reasonable approach for allocating the adjusted cost base (ACB) of the shares previously held in IPM to the ACB of the shares of III and IEN is to take the weighted average trading price during the initial period when both companies were trading. This approach would indicate that for the ten day trading period June 18, 2002 to July 2, 2002 inclusive, 37% of the ACB of IPM shares would be allocated to III and 63% of the ACB of IPM shares would be allocated to IEN.
This information is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any particular Imperial Shareholder. Accordingly, Imperial Shareholders should consult their own tax advisers with respect to their particular circumstances.
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