|November 25, 2003|
Huckleberry Mine Management Restructured
|Vancouver (November 25, 2003) - Imperial Metals Corporation (III:TSX) is pleased to report that the shareholders of Huckleberry Mines Ltd. ("HML"), owner of the Huckleberry copper mine located near Houston, British Columbia, have agreed to restructure the management of the mine. |
The Huckleberry mine will now be operated by HML under the leadership of Jim O'Rourke as President and Director. Imperial will continue to have significant influence on Huckleberry and will act in an advisory capacity on mine operations. There are no changes to the ownership of HML. Imperial retains its 50% equity interest.
The move, which is cash neutral to Imperial, will significantly improve Imperial's balance sheet. Up to now HML's financial position and operations have been included in Imperial's financial statements on a proportionate consolidation basis. Imperial will now account for its interest in HML on the equity basis. As a result, all of HML's assets and liabilities will be deconsolidated from Imperial's balance sheet resulting in the elimination of approximately $68 million in HML debt and the reversal of Imperial's negative working capital.
Under the equity accounting basis Imperial will no longer record its share of HML revenues and expenses on a line by line basis. Instead, Imperial will record its 50% share of HML's operating results as a single line item in its Statement of Income.
The management restructuring at Huckleberry will give Imperial more time to focus on its 100% owned Mount Polley property. Over the last few months, Imperial has announced two discoveries of high grade copper-gold mineralization at Mount Polley. The first, a near surface high grade copper-gold silver strike in the Northeast Zone. The second, deep seated copper-gold mineralization in the Springer Zone.
Both discoveries are expanding with drilling underway at Springer and soon to be resumed at the Northeast Zone, funded by the $10 million bought deal private placement financing announced on November 6, 2003.
For further information contact:
Brian Kynoch, President - 604.669.8959 or
Sabine Goetz, Investor Relations - 604.488.2657 / email@example.com
You can view the Next News Release 2003 item: Fri Nov 28, 2003, Imperial Reports Results for Third Quarter 2003
You can view the Previous News Release 2003 item: Fri Nov 7, 2003, Imperial Intersects 466 Metres Grading 0.49% Copper and 0.36 g/t Gold in Springer Zone
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