Imperial Announces Third Quarter Production Results, Extension of Covenant Waiver Under Senior Credit Facility and Extension ...
October 13 2017 - 8:39PM
Imperial Metals Corporation (the “Company”)
(TSX:III) reports on production, Senior Credit Facility and Bridge
Loan.
Third Quarter Production Results
The Company reports third quarter production
results from the Red Chris mine of 19.65 million pounds copper and
8,426 ounces gold, up 27% and 37% respectively from the second
quarter. Higher copper and gold grade ore was mined in September,
later than expected, due to lower than anticipated mining rates.
Grades which averaged 0.38% copper and 0.18 g/t gold in July and
August, increased to 0.47% copper and 0.29 g/t gold in September,
as deep main zone ore became the main source of mill feed. Copper
recovery also increased to an average 80.88% in September. This
deeper main zone ore will provide the majority of mill feed for the
remainder of the year. The plant achieved the design mill
throughput for the third quarter averaging 30,135 tonnes per
calendar day.
In July, forest fires in the Cariboo region
affected Mount Polley mine production. All operations were
suspended July 15 to July 31, and operations were impacted to a
lesser degree both before and after the period of suspension. Mill
throughput for the third quarter was 1.44 million tonnes, down 23%
from the second quarter, and milling of material from low grade
stockpiles was required to augment lower mining rates. As a result,
production from Mount Polley in the third quarter was 3.98 million
pounds copper and 9,989 ounces gold.
Metal production for 2017 is not expected to
meet targets set in July given the delay in delivery of deeper and
higher grade ore to the mill at Red Chris, and the impact of the
forest fires on operations at Mount Polley. The updated target
ranges for 2017 metal production are 96-102 million pounds copper
and 84-92 thousand ounces gold. Red Chris is targeted to
produce approximately 76-80 million pounds copper and 33-37
thousand ounces of gold, and Mount Polley is targeted to produce
approximately 20-22 million pounds copper and 51-55 thousand ounces
gold.
Extension of Covenant Waiver
The Company advises that the waiver of
noncompliance with respect to one of the financial covenants under
the Senior Credit Facility has been extended from October 13, 2017
to the earlier of the date the Amending Agreement becomes effective
or October 31, 2017. Discussions with the Senior Credit
Facility Lenders are proceeding well, however the parties require
additional time to review, obtain approvals and complete the
necessary documentation to complete the financing plan that was
submitted by the Company as required under the original waiver
dated August 14, 2017.
Details of the financing plan are expected to be
released when the Amending Agreement becomes effective.
Extension of Bridge Loan
The Company also advises that the repayment of
the $20 million Bridge Loan of July 31, 2017 due on October 15,
2017 has been extended to January 5, 2019 unless the Company fails
to complete certain steps contemplated in the financing plan
presented to the Senior Credit Facility lenders. Should these steps
not be completed, the loan will be due on November 15, 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.
Company ContactsBrian Kynoch |
President | 604.669.8959 Andre Deepwell
| Chief Financial Officer |
604.488.2666 Steve Robertson | Vice President
Corporate Affairs | 604.488.2669 Gordon Keevil
| Vice President Corporate Development
| 604.488.2677 Sabine Goetz |
Shareholder Communications | 604.488.2657
| investor@imperialmetals.com
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: expectations
that the Red Chris mine’s deep main zone ore will provide the
majority of the mill feed for the remainder of the year;
expectations that the Company is unlikely to meet the 2017
production targets set in July given the delay in delivery of
deeper and higher grade ore to the mill at Red Chris, and the
impact of forest fires on operations at Mount Polley; revised
production targets for both the Red Chris and Mount Polley mines;
and expectations that details of the financing plan are expected to
be released when the Amending Agreement becomes effective. 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, risks related to changes in project
parameters as plans continue to be refined; future prices of
mineral resources; possible variations in ore reserves, grade or
recovery rates; accidents; dependence on key personnel; labour pool
constraints; labour disputes; availability of infrastructure
required for the development of mining projects; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; that additional required
financing may not be available to the Company on terms acceptable
to the Company or at all; counterparty risks associated with sales
of our metals; changes in general economic conditions; increased
operating and capital costs; and other risks of the mining industry
as well as those 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.
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