By Sheri Kasprzak
Atlanta, Feb. 22 - Imperial Metals Corp. said it will raise C$20 million in a private placement of debentures, split between brokered and non-brokered offerings.
The offering includes C$10 million five-year unsecured convertible debentures that bear interest at 6% annually and are convertible into common shares at C$8.65 each.
Haywood Securities Inc. is the placement agent in the offering, which is expected to close March 4.
Additionally, some directors, officers and employees of Imperial Metals will buy $10 million in 6% unsecured convertible debentures under the same terms as the brokered offering. The non-brokered deal sold to insiders will be discounted 4% in place of a commission being paid.
Based in Vancouver, B.C., Imperial is a precious metals exploration company. It plans to use the proceeds from both the brokered and non-brokered deals to restart, explore and develop its operations at the Mount Polley open pit copper-gold mine in British Columbia. The remainder will be used for working capital.
| Issuer: | Imperial Metals Corp.
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| Issue: | Unsecured convertible debentures
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| Amount: | C$20 million (C$10 million brokered, C$10 million non-brokered)
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| Maturity: | Five years
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | C$8.65
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| Warrants: | No
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| Placement agent: | Haywood Securities Inc. (for half of offering)
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| Pricing date: | Feb. 18
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| Settlement date: | March 4
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| Stock price: | C$7.18 at close Feb. 18
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