Imperial Closes Bridge Loan Financing
July 31 2017 - 6:56PM
Imperial Metals Corporation (the “Company”)
(TSX:III) reports that it has closed a $20 million bridge loan
financing (“Bridge Loan”) with affiliates of its two major
shareholders, Edco Capital Corporation, controlled by N. Murray
Edwards and The Fairholme Partnership, LP, a private fund advised
by Fairholme Capital Management, L.L.C., each of which has provided
$10 million of the Bridge Loan.
The Bridge Loan is secured by all assets of the
Company, and is subordinated to the Senior Credit Facility and
Second Lien Credit Facility lenders. Interest on the Bridge Loan is
payable monthly commencing on August 31, 2017 at the rate of 8% per
annum. The Bridge Loan matures on the earlier of October 15, 2017
or the date the Company secures additional financing.
The Bridge Loan proceeds will be used for
general working capital purposes and to support ongoing
operations.
The Bridge Loan is a “related party transaction”
under Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions. The Company did not
file a material change report 21 days prior to the closing of the
Bridge Loan because details were not settled until shortly prior to
closing and the Company wished to complete the Bridge Loan as soon
as possible.
For additional information, refer to the
Company’s news release issued on July 6, 2017.
About Imperial Imperial
is a Vancouver based exploration, mine development and operating
company. The Company, through its subsidiaries, owns the Red Chris,
Mount Polley and Huckleberry copper mines in British Columbia.
Imperial also holds a 50% interest in the Ruddock Creek lead|zinc
property in British Columbia.
Forward-Looking Information and Risks
Notice
Forward-looking statements relate to future
events or future performance and reflect Company management's
expectations or beliefs regarding future events and include, but
are not limited to, specific statements regarding the Company’s
intention to use the Bank Loan proceeds for general working capital
purposes and to support ongoing operations; and the Company’s plans
to secure additional financing. In certain cases, forward-looking
statements can be identified by the use of words such as "plans",
"expects" or "does not expect", "is expected", "outlook", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
In this document certain forward-looking statements are identified
by words including "guidance", "expectations", "targeted", "plan",
"planned", "estimated", "calls for" and "expected". By their very
nature forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risk factors detailed from time to
time in the Company's interim and annual financial statements and
management's discussion and analysis of those statements, all of
which are filed and available for review on
sedar.com. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking statements.
Imperial Contact Information
Brian Kynoch | President | 604.669.8959
Andre Deepwell | Chief Financial Officer | 604.488.2666
Gord Keevil | Vice President Corporate Development | 604.488.2677
Steve Robertson | Vice President Corporate Affairs | 604.488.2669
Sabine Goetz | Shareholder Communications | 604.488.2657 | investor@imperialmetals.com
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