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Imperial Metals Closes Sale of a 70% Interest in Red Chris Mine
VANCOUVER, British Columbia, Aug. 15, 2019 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the “Company”) (TSX:III) announces the closing of the previously ann
About this update from Imperial Metals Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 15, 2019 (GLOBE NEWSWIRE) -- Imperial Metals Corporation (the “Company”) (TSX:III) announces the closing of the previously announced sale of a 70% interest in its Red Chris copper and gold mine in British Columbia, Canada to Newcrest Mining Limited (“Newcrest”) (ASX: NCM) for a final purchase price of US$804 million subject to debt and working capital adjustments. Inclusive of the near term settlement of some of these adjustments, Imperial received approximately US$775 million in net cash consideration. The Company and Newcrest have formed a joint venture for the operation of Red Chris with Newcrest acting as operator. The Company retains a 30% joint venture interest in the Red Chris mine. The Company’s President, Brian Kynoch, said: “We are pleased to have the Red Chris mine move to this next chapter, and to have completed this transaction with Newcrest. The sale of a 70% interest in Red Chris to Newcrest will allow Imperial to significantly strengthen its balance sheet, while continuing to hold a 30% interest in a joint venture that will leverage Newcrest’s unique technical expertise in block caving operations. We look forward to working alongside Newcrest with this new venture as well as the resumption of exploration activities at Red Chris. As a result of this transaction, Imperial will be in a much better position to create value and opportunities for its shareholders and stakeholders.” Newcrest’s Managing Director and CEO, Sandeep Biswas, said: “We are delighted to have closed the Red Chris transaction and add this operating mine to our existing low cost, long-life portfolio. We are pleased with the highly constructive and collaborative relationship we are developing with the Tahltan Nation and the Government of British Columbia and look forward to working together as we execute our forward work plan to unlock the significant potential from Red Chris. We are excited to establish a strong presence in British Columbia, Canada, a quality mining jurisdiction in a country with roots in mining, much like Australia.” The proceeds from the sale will be used to repay certain existing debt obligations, with remaining funds to be utilized for working capital purposes. Borden Ladner Gervais LLP acted as the Company’s legal counsel and BMO Capital Markets acted as f...