Imperial Metals Corporation (TSX:III) has closed a non-brokered private placement of unsecured non-convertible debentures with an aggregate principal amount of $53 million.
The company issued unsecured non-convertible debentures of an aggregate principal amount of $48,450,000 which have a maturity date of four years from the date of issuance, and which bear interest at a rate of 10.0% per annum, with interest paid semi-annually in cash, with the first payment due June 23, 2023.
In connection with the issuance of the A Debentures, the company issued 6,056,250 common share purchase warrants which are exercisable into common shares of the company at a price of $2.10 per share for a period of four years from the date of issuance. The company also issued unsecured non-convertible debentures (B Debentures) of an aggregate principal amount of $4,550,000 which have a maturity date of 12 months from the date of issuance, and which bear interest at a rate of 12.0% per annum, with interest paid semi-annually in cash, with the first payment due June 23, 2023.
The proceeds from the Private Placement are intended to be used to fund the continuing operations at the company’s Mount Polley mine and Red Chris mine and for general working capital purposes.
N. Murray Edwards purchased $35.45 million of the A Debentures and $4.55 million of the B Debentures, and as part of the purchase of the A debentures received 4,431,250 Warrants. In addition, directors and officers of the company purchased $1.57 million of the A Debentures and as part of the A Debentures received 196,250 Warrants.
Shareholdings of N. Murray Edwards
Prior to the acquisition of the Edwards Warrants, N. Murray Edwards had beneficial ownership and control or direction over 69,375,775 common shares and debentures convertible into 10,156,250 common shares for a total of 79,532,025 common shares of the Company, together representing 48.19% of the company’s issued and outstanding common shares as of the date hereof. Following acquisition and assuming exercise of the Edwards Warrants and conversion of the Edwards Convertible Debentures (and assuming no other debenture holder conversion or warrant holder exercise), Mr. Edwards would have 83,963,275 common shares of the company representing 49.55% of the Company’s issued and outstanding common shares.
About Imperial
Imperial is a Vancouver based exploration, mine development and operating company with holdings that include the Mount Polley mine (100%), the Huckleberry mine (100%), the Red Chris mine (30%). Imperial also holds a portfolio of 23 greenfield exploration properties in British Columbia.
For further information please visit: https://imperialmetals.com/
