|May 19, 2005|
Imperial Revises and Completes Cdn$14.5 Million Working Capital Facility
|Vancouver (May 19, 2005) - Imperial Metals Corporation (III-TSX) announces the closing of the working capital facility previously announced on May 5, 2005 with the following revisions: |
1) The facility has been reduced from $15.0 million to $14.5 million.
2) The number of warrants to be issued in connection with the facility has been reduced by 20% from 0.1666 of a warrant for each dollar drawn on the line of credit to 0.1335 of a warrant for each dollar drawn on the line of credit up to a maximum of 1,935,750 warrants.
3) The facility was provided by a total of five parties, three of whom are arm's length institutional shareholders of the Company who provided $4.5 million of the facility, and two of which are insiders of the Company and who provided $10.0 million of the facility. Edco Capital Corporation, a company associated with N. Murray Edwards, a significant shareholder of Imperial, provided $9.5 million of the facility and Larry Moeller, a director of the Company, provided $0.5 million of the facility. A maximum of 1,335,000 warrants are issuable to Edco Capital Corporation and Mr. Moeller.
The other terms of the facility remain unchanged. The facility bears interest at 8% per annum, and is secured by a floating charge on all the assets of Imperial plus guarantees by it subsidiaries, Mount Polley Mining Corporation and Mount Polley Holding Company Limited, and floating charges on all their assets. The term of the facility ends on June 30, 2006 and is extendable at the option of the lenders, thereafter. In consideration of the facility the lenders will be granted warrants to purchase common shares of Imperial at $6.00 per share, exercisable for 24 months from the date of issue, as the facility is drawn upon.
As a result of the facility noted above, N. Murray Edwards of Calgary announces that he may indirectly acquire warrants for the purchase of up to 1,268,250 additional common shares of Imperial at $6.00 per share. As a result of advances made pursuant to the facility to date, warrants to purchase 655,991 common shares will be issued to Edco Capital Corporation. Further warrants may be issued as the facility is drawn upon.
Mr. Edwards now holds 8,669,185 common shares of Imperial indirectly, 1,689,844 common shares of Imperial directly, and indirectly holds warrants to purchase 655,991 common shares of Imperial. Additionally, Mr. Edwards owns $9 million of convertible debentures of Imperial. Each $8.65 of face value of the convertible debenture is convertible into one common share of Imperial. If all the convertible debentures held by Mr. Edwards were converted into common shares then he would own an additional 1,048,462 common shares of Imperial. Mr. Edwards indicated that the acquisition was for investment purposes and that he may acquire additional common shares, convertible debentures or warrants of Imperial from time to time, depending on market conditions. A copy of Mr. Edwards report may be obtained from the persons set forth below.
For further information contact:
Brian Kynoch, President - 604.669.8959;
Andre Deepwell, Chief Financial Officer -- 604.488.2666;
Sabine Goetz, Investor Relations - 604.488.2657
You can view the Next News Release 2005 item: Tue May 24, 2005, Ed Yurkowski Joins Imperial's Board of Directors
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