NYBob
14 years ago
Imperial Metals Corporation: Red Chris Drilling Continues to Yield Long Intercepts of Copper Gold Mineralization
Monday April 12, 8:00 pm ET
http://ca.us.biz.yahoo.com/iw/100412/0607035.html?.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 04/12/10) - Imperial Metals Corporation (TSX:III - News) reports assay results from the ongoing drilling at Red Chris. Long intervals of copper/gold mineralization were intersected in all four holes reported, and drilling continues to extend the boundaries of the Red Chris deposit.
Copper/gold mineralization in drill hole RC09-353 extends for 1,135 metres, commencing earlier than anticipated at 67.5 metres below surface. The overall grade of this interval was 0.50% copper, 0.59 g/t gold and 0.01% molybdenum. The mineralized intercept in RC09-353 is distinguished as one of the longest to date at Red Chris, and the first with a significant continuous interval of molybdenum mineralization. The 145 metre interval from 1,032.5 metres to 1,177.5 metres was 0.029% molybdenum. RC09-353 was collared 220 metres northeast of the 2007 discovery drill hole 07-335 and is the most northeasterly collared drill hole in the deep East zone.
Drill hole RC09-354 was collared 26 metres southwest from 07-335 and drilled east toward drill hole RC09-350 at an angle of -71 degrees. RC09-354 was drilled to explore the connection between the strong copper/gold mineralization in 07-335 and the 152.5 metre interval grading 4.12% copper and 8.83 g/t gold in RC09-350. The upper portion of RC09-354 was strongly mineralized. A 297.4 metre section commencing 6.7 metres below surface graded 1.77% copper and 1.69 g/t gold. A further 817.5 metres grading 0.55% copper and 0.47 g/t gold was intersected commencing 480 metres below surface. RC09-354 deviated significantly to the south ending 145 metres away from its target location having failed to test the intended horizon. The mineralization in RC09-354 and RC09-350 share several common features relating to alteration and tenor of grade.
Drill hole RC10-355 was collared 440 metres west of 07-335 and 280 metres east of drill hole 07-336, a significant step out to the west of recent deep drilling. RC10-355 encountered 757.1 metres grading 0.38% copper and 0.48 g/t gold commencing 335.4 metres below surface. RC10-355 further confirms that Main zone and East zone mineralization is contiguous from just below the elevation tested by previous drilling to a depth of about 1,000 metres. RC10-355 encountered a higher grade interval at depth, with 57.5 metres grading of 0.93% copper and 1.56 g/t gold starting at 1,007.5 metres.
Drill hole RC10-360 was collared 57 metres west of RC09-350 and intersected a high grade mineralized zone similar in grade, gold/copper ratio, mineralogy and alteration to that in RC09-350. RC10-360 returned 528.7 metres, from 473.8 to 1,002.5 metres, grading 1.13% copper and 1.97 g/t gold. Assays for RC10-360 are not complete as results for the 1,002.5 to 1,267.5 metre interval are pending. The higher grade mineralization started at 607.5 metres depth and averaged 1.41% copper and 2.59 g/t gold over 355.0 metres.
Significant intervals encountered in holes RC09-353 and RC09-354, and RC10-355 and RC10-360 are provided below.
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Drill Total Interval Interval Interval Copper Gold Silver
Hole # Zone Length (m) from (m) To (m) Length (m) % g/t g/t
RC09-353 East 1287.8 67.5 1202.5 1135.0 0.50 0.59 0.71
including 570.0 1020.0 450.0 0.80 1.07 1.03
including 632.5 705.0 72.5 1.16 1.88 1.32
including 912.3 952.5 40.2 0.96 1.14 1.19
RC09-354 East 1357.6 6.7 304.1 297.4 1.77 1.69 5.23
including 6.7 120.0 113.3 2.44 1.87 7.38
and 480.0 1297.5 817.5 0.55 0.47 0.82
RC10-355 Saddle 1489.0 335.4 1092.5 757.1 0.38 0.48 1.27
including 1007.5 1065.0 57.5 0.93 1.56 4.19
RC10-360 East 1267.5 473.8 1002.5 528.7 1.13 1.97 1.99
including 607.5 962.5 355.0 1.41 2.59 2.40
including 700.0 755.8 55.8 2.00 4.22 3.25
including 802.5 952.5 150.0 1.83 3.34 3.35
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Note: drill holes RC10-356 to RC10-359 are geotechnical/condemnation holes
drilled in the tailings impoundment area.
The 2010 exploration program will focus on the delineation of the Red Chris mineralized system to at least 1,000 metres below surface with some holes testing to 1,500 metres. The work will initially focus on the area beneath the planned open pit where crews are expected to start work this summer in preparation for mining. Mines Act permitting through the Northwest Mine Development Review Committee is underway. Phase one of the geotechnical and condemnation drilling in the tailings impoundment area was initiated in early February, and completed in early April.
Steve Robertson, PGeo. is the Qualified Person as defined by National Instrument 43-101 for the exploration program at Red Chris. Samples for the diamond drilling reported at Red Chris were analyzed at Acme Analytical Laboratories in Vancouver. A full QA/QC program using blanks, standards and duplicates was maintained for all samples submitted to the labs. The deeper portion of the Red Chris porphyry mineralization is in the early stage of exploration and may be irregular in shape so true thicknesses have not been estimated. A drill plan and cross section will be available on the Company's website.
The Red Chris property in northern British Columbia is situated 18 kilometres southeast of the village of Iskut. Access to the property from pavement at Highway 37 is six kilometres along the Ealue Lake Road, and 17 kilometres along the Red Chris access trail.
Imperial is a mine development and operating company based in Vancouver, British Columbia. The Company's key properties are the Mount Polley open pit copper/gold producing mine in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine in northern British Columbia, the development stage Red Chris copper/gold property in northwest British Columbia, and the development stage Sterling gold property in southwest Nevada.
Contact:
Contacts:
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959
604.687.4030 (FAX)
Imperial Metals Corporation
Patrick McAndless
Vice President
604.488.2665
Imperial Metals Corporation
Sabine Goetz
Investor Relations
604.488.2657
info@imperialmetals.com
www.imperialmetals.com
Source: Imperial Metals Corporation
Jim Bishop
14 years ago
III.T Top Canada court rules in favor of Imperial mine
Thu Jan 21, 2010 12:44pm ESTStocks
Imperial Metals Corp
III.TO
$16.50
+1.07+6.93%12:19pm PST
* Supreme Court rules that Red Chris project may proceed
* Court clarifies that this decision is an exception
* Shares of Imperial Metals up 5 pct at midday (Adds analyst comment, share price move)
By David Ljunggren and Euan Rocha
OTTAWA/TORONTO, Jan 21 (Reuters) - Canada's Supreme Court ruled on Thursday that an Imperial Metals (III.TO) copper and gold project in British Columbia can go ahead, even though a full federal environmental assessment was never carried out.
But the court made it clear that its decision on Imperial's Red Chris project was an exception. It said that, in future, major projects would need comprehensive environmental assessments by both federal and provincial authorities, where required.
Although the victory bodes well for Red Chris, the ruling could mean that many other mining, energy and infrastructure projects will now face additional hurdles.
"This (ruling) is just going to add time to permit bigger projects, given that projects would have to be reviewed both provincially and federally," said Haywood Securities analyst Chris Thompson.
"What this tells me is that there is going to be a big duplication of work, which I think is actually relatively inefficient," Thompson said.
The ruling is a partial defeat for MiningWatch Canada, an environmental watchdog group that said the federal government should conduct its own full environmental assessment in all such cases. For Red Chris, Ottawa carried out a smaller assessment process known as a screening.
"I can see no justification in requiring Red Chris to repeat the environmental assessment process," wrote Justice Marshall Rothstein in the court's unanimous decision.
In a statement, Imperial Metals said the Supreme Court's decision would not affect development of Red Chris and the project would proceed on schedule.
Shares of Imperial Metals, which were halted early in the day, were up more than 7 percent at C$16.57 at midday on Thursday on the Toronto Stock Exchange.
Rothstein noted MiningWatch had appealed the overall assessment process, rather than the specific conclusions of the federal and provincial governments' assessments of Red Chris.
MiningWatch said it views the court's ruling as a victory.
"This landmark decision confirms that the government can no longer shirk the environmental protection duties that Parliament has assigned to it," said Lara Tessaro, a lawyer who represented MiningWatch.
Red Chris, a project in northwestern British Columbia that Imperial acquired in 2007, should produce 1.8 billion pounds of copper and 1.2 million ounces of gold over a 25-year mine life, according to a 2004 study, although the company has said additional drilling suggests the deposit is much larger.
The company's shares have risen more than 150 percent since November, helped by drilling of deeper-level mineralization in the hopes of eventually adding an underground mine to the current open-pit plan.
Imperial Metals received the go-ahead from the British Columbia government after a provincial environmental assessment and then approached the federal government. Ottawa initially said it would have to carry out its own full assessment but in December 2004 decided it would go ahead with the less demanding screening process.
The Federal Court of Appeal said the federal government -- referred to in the ruling as the Responsible Authority (RA) -- had the right to limit the environmental assessment process as it saw fit. The Supreme Court disagreed.
"I am of the opinion that the approach of the Federal Court of Appeal and that advocated by Red Chris and the government cannot be sustained," Rothstein said.
"A close reading of the relevant provisions of the Canadian Environmental Assessment Act leads to the conclusion that it is not within the discretion of the RA to conduct only a screening when a proposed project is listed (for review)."
If a project met the criteria for a full environmental review, "a comprehensive study is mandatory," he added. (Additional reporting by Cameron French; editing by Peter Galloway and Rob Wilson)
NYBob
15 years ago
Imperial Reports 2009 Third Quarter Financial Results
Friday November 13, 4:35 pm ET
http://ca.us.biz.yahoo.com/iw/091113/0559187.html?.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 11/13/09) - Imperial Metals Corporation (TSX:III - News) reports comparative financial results for the three and nine months ended September 30, 2009 and September 30, 2008 are summarized below and discussed in detail in the Management's Discussion and Analysis.
---------------------------------------------------------------------------
Three Months Ended Nine Months Ended
Sept 30 Sept 30
---------------------------------------------------------------------------
(unaudited) in thousands
except per share amounts 2009 2008 2009 2008
---------------------------------------------------------------------------
Revenues $ 53,788 $ 53,642 $ 137,583 $ 235,150
Operating Income $ 17,609 $ 9,885 $ 21,058 $ 95,220
Net Income (Loss) $ 4,544 $ 23,452 $ (9,356) $ 69,353
Net Income (Loss) Per Share $ 0.14 $ 0.72 $ (0.29) $ 2.13
Adjusted Net Income (1) $ 8,812 $ 5,361 $ 23,668 $ 59,978
Adjusted Net Income Per
Share (1) $ 0.31 $ 0.17 $ 0.74 $ 1.84
Cash Flow (1) $ 15,856 $ 7,891 $ 36,027 $ 92,544
Cash Flow Per Share (1) $ 0.49 $ 0.24 $ 1.12 $ 2.84
---------------------------------------------------------------------------
(1) Adjusted Net Income, Adjusted Net Income Per Share, Cash Flow and Cash
Flow Per Share are measures used by the Company to evaluate its
performance; however, they are not terms recognized under generally
accepted accounting principles. Adjusted Net Income is defined as net
income adjusted for certain items of a non-operational nature that
pertain to future periods as described in further detail in the
Management's Discussion and Analysis under the heading Adjusted Net
Income. Cash Flow is defined as cash flow from operations before net
change in working capital balances. Adjusted Net Income and Cash Flow
Per Share are the same measures divided by the weighted average number
of common shares outstanding during the period.
The Company believes these measures are useful to investors because
they are included in the measures that are used by management in
assessing the financial performance of the Company.
Revenues were $53.8 million in the September 2009 quarter compared to $53.6 million in the 2008 quarter.
Concentrate inventory levels were high at Mount Polley with approximately 10,000 tonnes at port and ready for shipment at quarter end. Mount Polley made a concentrate shipment in early October. Variations in quarterly revenue attributed to the timing of concentrate shipments can be expected in the normal course of business.
Operating income for the three months ended September 2009 increased to $17.6 million from $9.9 million in the September 2008 quarter.
Net income was $4.5 million in the September 2009 quarter compared to net income of $23.4 million in the 2008 quarter. Adjusted net income in the quarter was $9.8 million or $0.31 per share, versus $5.4 million or $0.17 per share in the September 2008 quarter. Adjusted net income is calculated by removing the unrealized gains and losses, net of related income taxes, resulting from mark to market revaluation of copper hedging and removing the unrealized share based compensation expense, net of taxes and certain other items, net of taxes. Adjusted net income is not a term recognized under generally accepted accounting principles however it does show the current period financial results excluding the effect of items not settling in the current period.
The Company realized gains on derivative instruments of $1.4 million in the quarter compared to a realized loss of $1.4 million in the 2008 quarter. The increase in copper prices since June 30, 2009 resulted in unrealized losses of $12.1 million in the September quarter compared to unrealized gains of $30.4 million in the September 2008 quarter when copper prices declined. In total, the Company recorded losses on derivative instruments of $10.6 million in 2009 versus gains of $29.0 million in 2008.
Cash flow increased to $15.9 million in the September 2009 quarter compared to $7.9 million in the 2008 quarter. The $8.0 million increase is primarily the result of improved operating margins at Huckleberry.
Capital expenditures decreased to $7.3 million from $17.2 million in the comparative 2008 quarter. Expenditures in the September 2009 quarter were financed from cash flow from the Mount Polley and Huckleberry mines. In addition, in the September 2009 quarter the Company purchased $1.1 million of mobile mining equipment financed by long term debt. At September 30, 2009 the Company had $29.6 million in cash, cash equivalents and short term investments.
During the September 2009 quarter the Company purchased for cancellation 88,300 common shares at a cost of $0.5 million under the Normal Course Issuer Bid.
Mount Polley Mine
---------------------------------------------------------------------------
Production Nine Months Ended September 30
---------------------------------------------------------------------------
(unaudited) 2009 2008
---------------------------------------------------------------------------
Ore milled (tonnes) 5,217,744 5,138,147
Ore milled per calendar day (tonnes) 19,113 18,752
Grade % - Copper 0.389 0.561
Grade g/t - Gold 0.319 0.304
Recovery % - Copper 58.66 74.08
Recovery % - Gold 67.63 69.09
Copper produced (lbs) 26,262,166 47,080,160
Gold produced (oz) 36,196 34,694
Silver produced (oz) 173,534 406,420
---------------------------------------------------------------------------
Mill throughput has averaged 19,113 tonnes per day for the year, up over last year. Copper production for the third quarter was 9.1 million pounds, down from the 2009 second quarter total of 9.7 million pounds. Gold production was 13,529 troy ounces, up from the 2009 second quarter total of 12,728 troy ounces. Recoveries from the high oxide Springer ore continue to be low, but are increasing with copper recovery going from 59.24% in the second quarter to 61.71% in the current quarter, and gold recovery going from 68.53% in the second quarter to 70.45% in the current quarter. The majority of ore delivered to the mill was from the Springer pit, along with smaller amounts from the Southeast and Wight pits. The last of the Wight pit ore was milled in the September quarter.
Development of the Pond zone pit is underway. The first ore is expected to be delivered to the mill in the first quarter of 2010.
Exploration expenditures at Mount Polley were $1.4 million in the September 2009 quarter compared to $0.8 million in the September 2008 quarter. Drilling is being conducted in the Boundary zone, Pond zone, and to the northwest of the Springer pit. A permit has been received to drive an access ramp from the Wight pit to explore the Boundary zone with underground drilling. The excavation of this ramp is expected to begin in the second quarter of 2010. The Wight pit is currently being backfilled to provide access to the north wall of the pit for this ramp to be collared.
The wholly owned Mount Polley open pit copper/gold mine is located 56 kilometres northeast of Williams Lake, British Columbia.
Huckleberry Mine
---------------------------------------------------------------------------
Production Nine Months Ended September 30
---------------------------------------------------------------------------
(100% - Imperial owns 50%) (unaudited) 2009 2008
---------------------------------------------------------------------------
Ore milled (tonnes) 4,498,800 4,457,955
Ore milled per calendar day (tonnes) 16,479 16,270
Grade (%) - Copper 0.374 0.313
Grade (%) - Molybdenum 0.006 0.006
Recovery (%) - Copper 90.60 88.50
Recovery (%) - Molybdenum 2.55 22.00
Copper produced (lbs) 33,607,000 27,246,753
Gold produced (oz) 2,583 2,305
Silver produced (oz) 197,541 182,696
Molybdenum produced (lbs) (i) 14,467 137,407
---------------------------------------------------------------------------
(i) molybdenum circuit was only run for a few days during period due to low
grades and prices
Copper production increased during the first nine months compared to the same 2008 period. Throughput, grade and recovery all continued to improve as higher grade ore was delivered from the Main Zone Extension pit. Molybdenum continued to only be produced on days when higher molybdenum grade ore is delivered to the mill.
A drill program consisted of fourteen diamond drill holes totaling about 4,000 meters is underway to further test the area between the Main Zone Extension and Main Zone pits to determine if it will be possible to further extend the life of the mine.
Imperial owns 50% of the Huckleberry open pit copper/molybdenum mine located 123 kilometres southwest of Houston, British Columbia.
Red Chris
In the 2009 deep drilling program, twelve 1,500 metre diamond drill holes were planned to test the deep mineralization discovered in the East zone in 2007. To date, five of the planned holes have been completed and another three are expected to be completed by year end. All the holes assayed have returned long intervals of copper/gold mineralization, adding to the evolving model of deep mineralization in the East zone.
Recently released results from drill hole RC09-350 (NR:Nov 9/09), the eastern most drill hole in the current program, intercepted 152.5 metres grading 4.12% copper and 8/83 g/t gold starting at a depth of 540 metres. This is the highest grade intercept of that scale in the properties history.
During this past summer, in addition to the diamond drilling, the following exploration programs were under taken: 31 line kilometres of deep penetrating induced polarization (IP) and magnetotelluric (MT) survey over the deposit and surrounding area, 166 short diamond drill holes on a 400 metre grid to explore the till covered geology in the vicinity of the deposit, and an airborne magnetic survey covering the entire property. Staff geologists and consultants are working on development of a geologic model using all the information collected that will help explain the various characteristics of the deposit at depth, including the zones of high grade gold and high bornite content and focus further exploration at Red Chris.
The Red Chris copper/gold property in northwest British Columbia is 80 kilometres south of Dease Lake and 18 kilometres southeast of the village of Iskut. Access to the property from pavement at Highway 37 is six kilometres along the Ealue Lake Road, and 17 kilometres along the newly constructed Red Chris access road.
Sterling
The 2009 underground diamond drilling program was completed in the third quarter. The 144 zone has been extended to the north, west and south, and high grade gold mineralization has been discovered in the latite dike that divides the 144 zone from its east extension. A total of 35 holes totaling 9,965 feet were drilled.
The results of this drill program will be incorporated into the geologic model of the 144 zone, followed by an update of the gold resource estimate. A study will then follow to investigate whether the resource is sufficient to reopen the Sterling gold mine. Our own crews are currently extending the underground workings to facilitate additional exploration and the start of mining.
The Sterling gold property is located 185 kilometres northwest of Las Vegas, Nevada.
Selkirk Metals Corp.
A business combination with Selkirk Metals Corp. was completed in early November, bringing a portfolio of BC early stage and advanced exploration properties to the combined company. We look forward to working with the Selkirk team to further explore and develop these assets. Imperial welcomes Mr. Ted Muraro to the Board of Directors. Mr. Muraro was a director of Selkirk. He has a long and distinguished career of over forty years in the mineral exploration industry.
Outlook
With favourable metal prices, tempered somewhat by a strengthening Canadian Dollar, Imperial has been able to generate cash flow to fund an aggressive exploration program which includes drilling at Red Chris, Mount Polley, Sterling and Huckleberry.
During the September quarter, the Government of Canada announced its commitment to invest, along with the Province of British Columbia, in the construction of the Northwest Transmission Line. The power line would run along Highway 37 and provide clean, affordable, grid power to northwestern British Columbia. More specific to Imperial, the construction of the Northwest Transmission Line will provide a key component required for the development of Red Chris.
Exploration work this year has been successful, especially with the exciting results from the deep drilling at Red Chris's East zone. We look forward to results from a continued and expanded exploration and development program at Red Chris in 2010.
Detailed financial information is provided in the Management's Discussion and Analysis in the Third Quarter Report available on the Company's website and on SEDAR (www.sedar.com).
Contact:
Contacts:
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959
604.687.4030 (FAX)
Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
604.488.2666
Imperial Metals Corporation
Sabine Goetz
Investor Relations
604.488.2657
info@imperialmetals.com
http://www.imperialmetals.com
Source: Imperial Metals Corporation
NYBob
15 years ago
Selkirk Shareholders Approve Merger with Imperial Metals Corporation
* Press Release
* Source: Selkirk Metals Corp.
* On 6:35 pm EDT, Friday October 30, 2009
http://finance.yahoo.com/news/Selkirk-Shareholders-Approve-ccn-490439344.html?x=0&.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 30, 2009) - Further to the news releases of Selkirk Metals Corp. ("Selkirk") (TSX VENTURE:SLK - News) dated July 27, September 15, October 6 and October 27, 2009, the special meeting of Selkirk's shareholders was held on Friday, October 30, 2009 to vote in respect of the proposed merger with Imperial Metals Corporation ("Imperial") (TSX:III - News) by way of Plan of Arrangement (the "Arrangement"). Additional information concerning the Arrangement is provided in Selkirk's information circular dated September 16, 2009, a copy of which is available on SEDAR under Selkirk's profile at www.sedar.com.
At the meeting, a special resolution approving the Arrangement (the "Arrangement Resolution") was passed by an affirmative vote of over two-thirds of the aggregate votes cast by Selkirk shareholders present in person and by proxy at the Meeting. Specifically, 96.31% of the votes cast in respect of the Arrangement Resolution were voted in favour of the Arrangement Resolution, and 3.69% of the votes cast in respect of the Arrangement Resolution were voted against the Arrangement Resolution.
Completion of the Arrangement remains subject to all necessary regulatory and court approvals. The court hearing in respect of the final court order of the British Columbia Supreme Court approving the Arrangement is scheduled to take place at 9:45 a.m. (Vancouver time), on November 2, 2009, or as soon thereafter as counsel for Selkirk may be heard.
About Imperial
Imperial is a mine development and operating company based in Vancouver, British Columbia. Imperial's key properties are the Mount Polley open pit copper/gold producing mine in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine in northern British Columbia, the development stage Red Chris property in northwest British Columbia, and the development stage Sterling gold property in southwest Nevada.
About Selkirk
Selkirk is a Vancouver based mineral exploration and development company with a large portfolio of exploration properties predominantly in British Columbia. Since it commenced operating in 2005 Selkirk has focused its field operations on the exploration and development of the Ruddock Creek Zinc/lead project and the Catface copper project both of which have a defined resource and development potential.
SELKIRK METALS CORP.
Gordon Keevil, President and CEO
This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 or "forward-looking information" within the meaning of Canadian securities laws. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that Selkirk expects, are forward-looking statements. Although management believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact:
Brian Kynoch
Imperial Metals Corporation
President
604-669-8959
www.imperialmetals.com
Gordon Keevil
Selkirk Metals Corp.
President
604-687-2038
604-687-3141 (FAX)
www.selkirkmetals.com
NYBob
15 years ago
Imperial Metals Corporation: Arrangement Agreement with Selkirk Metals Corp. Signed
Tuesday September 15, 7:00 am ET
http://ca.us.biz.yahoo.com/iw/090915/0537171.html?.v=1
VANCOUVER, BRITISH COLUMBIA--(Marketwire - 09/15/09) - Imperial Metals Corporation (TSX:III - News) is pleased to announce that Selkirk Metals Corp. ("Selkirk") has signed a definitive agreement (the "Agreement") under which Imperial will acquire all of the issued and outstanding shares of Selkirk (the "Transaction").
Under the terms of the Agreement, each holder of common shares of Selkirk (other than holders exercising dissent rights) may elect to receive either $0.12 cash for every share of Selkirk held, or one common share of Imperial for every 30 shares of Selkirk held. If no election is made by a Selkirk shareholder, such holder will be deemed to have elected to receive cash.
Imperial shall not be required to issue more than 2,200,000 of its common shares in connection with the Transaction. If elections made by Selkirk shareholders would result in the issuance of more than 2,200,000 common shares of Imperial, such number of Imperial common shares will be allocated among such electing holder on a pro-rata basis, with the balance of the consideration payable in cash.
Imperial and Selkirk anticipate that the Transaction will be carried out by way of a statutory plan of arrangement whereby Imperial will acquire all of the issued shares of Selkirk, and Selkirk will become a wholly-owned subsidiary of Imperial.
The completion of the Transaction is subject to a number of conditions, including: the approval of the Supreme Court of British Columbia to the Plan of Arrangement; approval of the Selkirk shareholders at a special meeting of Selkirk shareholders to consider the Transaction, to be held on October 30, 2009; not more than 10% of the Selkirk shares exercising their right to dissent to the Transaction; and approval of the Transaction by the TSX Venture Exchange and the Toronto Stock Exchange and any other applicable regulatory authorities. There is no certainty that the Transaction will be completed as presently contemplated, or at all.
Pursuant to the terms of the Agreement, Imperial will issue options to holders of all of Selkirk's outstanding options that provide for rights to acquire common shares of Imperial comparable to those previously held to acquire shares of Selkirk, with such necessary adjustments to reflect the exchange ratio described above.
Subject to the completion of the above conditions, the Transaction is expected to be completed in November 2009.
Imperial is a mine development and operating company based in Vancouver, British Columbia. Imperial's key properties are the Mount Polley open pit copper/gold producing mine in central British Columbia, the Huckleberry open pit copper/molybdenum producing mine in northern British Columbia, the development stage Red Chris property in northwest British Columbia, and the development stage Sterling gold property in southwest Nevada.
Selkirk is a Vancouver based mineral exploration and development company with a large portfolio of exploration properties predominantly in British Columbia. Since it commenced operations, Selkirk has focused on the exploration and development of the Ruddock Creek Zinc/lead project and the Catface copper project. Both properties have a defined resource and development potential.
Selkirk recently issued a NI 43-101 compliant resource report entitled "Mineral Resource Estimate Ruddock Creek Project-Kamloops Mining Division, British Columbia" (summarized in Selkirk News Release July 20, 2009). Selkirk also recently filed a NI 43-101 compliant resource report for the Cliff Zone on the Catface Project, entitled "Mineral Resource Estimate Catface Copper Project-Alberni Mining Division, Vancouver Island, British Columbia" (summarized in Selkirk News Release September 2, 2009).
For further information on Selkirk Metals Corp. please contact Gordon Keevil, President at 604-687-2038 or visit their website at www.selkirkmetals.com.
Contact:
Contacts:
Imperial Metals Corporation
Brian Kynoch
President
604.669.8959
604.687.4030 (FAX)
Imperial Metals Corporation
Andre Deepwell
Chief Financial Officer
604.488.2666
Imperial Metals Corporation
Sabine Goetz
Investor Relations
604.488.2657
info@imperialmetals.com
www.imperialmetals.com
Source: Imperial Metals Corporation
NYBob
15 years ago
Imperial Plus Selkirk Is One Of The Few Deals Where One And One Make More Than Two
By Charles Wyatt
http://www.minesite.com/nc/minews/singlenews/article/imperial-plus-selkirk-is-one-of-the-few-deals-where-one-and-one-make-more-than-two/1058.html
It is no sudden whim this proposed takeover of Selkirk Metals by Imperial Metals Corporation, as discussions have been going on since last year. The question that has to be asked, however, is whether it would have materialised if the junior mining sector had not received such a battering at the end of last year. The terms of the deal make clear who ends up in charge, as each Selkirk shareholder can elect to receive C12 cents per share or one share in Imperial Metals for every 30 Selkirk shares. And Selkirk is going to have the right to have a single nominee on the board of Imperial. Whichever way you look at it, that looks like a takeover and the chart of the Selkirk share price tends to confirm this. The share price is currently C13.5 cents against a low of only C3 cents back in February. Set that against the current value of this paper offer at C13.7 cents, given that Imperial Metals is trading at C$4.12, and it looks like no rival bid expected then. It all seems to add up to: “ave Imperial, atque vale Selkirk” – which translates from the Latin as “Hail Imperial, Farewell Selkirk”.
A quick look back to the last quarterly results from Imperial Metals explains all. In the period to March revenue from copper production amounted to C$34.9 million, though there was actually a loss at the net income level due to a combination of hedging and the copper price. Amazing how accountants manage to make a dog’s breakfast out of profit and loss on a mining business, but the message is that Imperial Metals is a well managed mid-tier copper producer, and Selkirk Metals needs a partner with power and money to bring its Ruddock Creek project into production.
Gordon Keevil, chief executive of Selkirk, explains that back in the dog days of late 2008 he and his team had plenty of time to consider all options for the future. The underground development and diamond drilling programme had been completed at the Ruddock Creek lead-zinc project, as had the surface diamond drilling programme on the Catface copper property. Just last month a resource estimate was announced for the E Zone at Ruddock Creek and this is just one of eight known mineralised zones which have been drilled sufficiently to estimate a resource. Selkirk has been slogging away here for the past four years and though both Ruddock Creek and Catface are at advanced stages and have established resources, a whole lot of money will still have to be spent to achieve the next step towards development.
As far as Catface is concerned an MOU was signed with the Ahousaht First Nation in January 2008 and last summer the first exploration programme was carried out on the property for almost 30 years. Meanwhile Selkirk has filed an amendment to its exploration permit which allows the company to re-establish road access to the area of the main workings and conduct an expanded diamond drilling program to further define and expand the recourse. Raising finance to continue such work by an equity placing would mean hefty dilution, whereas the takeover by Imperial means that Selkirk shareholders can retain an interest in these projects within a portfolio that will now include the Mount Polley open pit copper-gold producing mine in central British Columbia, the Huckleberry open pit copper-molybdenum producing mine in northern British Columbia, the development stage Red Chris property in northern British Columbia, and the exploration stage Sterling gold property in southwest Nevada, all owned by Imperial Metals.
Apart from Sterling, all the properties in the combined portfolio are situated in British Columbia which only enhances the common sense element of the deal. This portfolio also runs all the way from early exploration through to production, and offers a diverse commodity base with a long history of exploration and mine operations within the province. Imperial is one of the best positioned mining companies in the region and has strong finances, no long term debt, a strong working capital position and well established operating experience. When making up his mind about the deal Gordon Keevil also had to bear in mind that although finance for junior exploration companies is more easily available than it was, investors are still looking for companies close to production.
It is a hard decision for directors to make to relinquish control of a company which they regard as their baby, and credit for being willing to let go must be given to Gordon Keevil and his co-directors. Both companies know each other well, as Brian Kynoch, president of Imperial Metals has been a director of Selkirk since way back. The final crunch behind the decision making comes from the production profile, which will all emanate from Imperial Metals in the early days of the enlarged company. Selkirk will play its part later. In the medium term, Red Chris could play a major role as this is seen as a billion tonne copper-gold deposit for which all necessary permits have been received and which is simply awaiting construction of the northwest corridor power line. The new Imperial Metals will certainly go down well in London and the sooner Gordon and Brian can spare time to come over and present, the better.
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