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Imperial Metals Closes Previously Announced $53 Million Non-Brokered Private Placement of Debentures
VANCOUVER, British Columbia, Dec. 28, 2022 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the “Company” or “Imperial”) (TSX:III) is pleased to announce that,
About this update from Imperial Metals Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, Dec. 28, 2022 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the “Company” or “Imperial”) (TSX:III) is pleased to announce that, further to its news release dated December 9, 2022, the Company has closed its non-brokered private placement (the “Private Placement”) of unsecured non-convertible debentures (the “Debentures”) with an aggregate principal amount of $53 million. The Company issued unsecured non-convertible debentures (the “A 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 (the “B Debentures”) of an aggregate principal amount of $4,550,000 which have a maturity date of twelve 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. No warrants were issued in connection with the B Debentures. 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 (the “Edwards 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. Such participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”) Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such inside...