Imperial seeks to raise C$53m for Mount Polley, Red Chris
TSX-listed Imperial has announced a nonbrokered private placement of debentures to raise C$53-million, which it will use to fund ongoing operations at the Mount Polley mine and continued exploration and feasibility study work at the Red Chris mine, in British Columbia.
The debentures will have a four-year term ending December 16, 2026. The company intends to issue 6.625-million warrants which will be exercisable into common shares at C$2.10 each.
Interest at 10% a year will be payable semi-annually in cash with the first payment due on June 16, 2023. Should the warrants not receive the requisite approvals, interest on the debentures will increase to 12% a year.
Imperial’s biggest shareholder, Murray Edwards, will purchase at least $40-million of the debentures.
Imperial reports that Mount Polley in November achieved its highest monthly copper and gold production since its restart, with 1.78-million pounds of copper and 2 639 oz of gold being produced.
The company notes that the operation is still being impacted by unanticipated electrical failures, which have reduced mill throughput rates. However, with pebble mill #3 now operational, copper and gold recoveries in November were in line with historical recoveries and the highest since restart at 76.9% for copper and 69.8% for gold.
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