Six-year debentures pay interest at 6%, convert at C$12.00
New York, Aug. 24 – Imperial Metals Corp. said it completed a C$30 million private placement of convertible debentures due 2021.
The debentures pay interest at 6% and convert into common stock at a price of C$12.00 per share. Holders must give at least 61 days’ notice. The conversion premium is a 26.85% over the volume-weighted average trading price of the company’s stock for the five days ending on July 16.
Imperial Metals can call the debentures subject to the closing price of its common stock exceeding a 125% hurdle for 30 consecutive days.
N. Murray Edwards bought C$16.2 million of the non-brokered offering, Fairholme Partnership, LP bought C$8.1 million and company directors bought C$1.6 million. The Tahltan Nation, acting through the Tahltan Nation Development Corp., also participated.
Imperial Metals is a Vancouver, B.C. mining company that owns the Mount Polley copper and gold mine in British Columbia, the Sterling gold mine in Nevada and the Red Chris copper and gold mine in northern British Columbia. It also has a 50% interest in the Huckleberry copper mine and a 50% interest in the Ruddock Creek lead and zinc property, both in British Columbia
| Issuer: | Imperial Metals Corp.
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| Issue: | Convertible debentures
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| Amount: | C$30 million
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| Maturity: | Aug. 25, 2021
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| Coupon: | 6%
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| Conversion price: | C$12.00
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| Call: | Subject to 125% hurdle
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| Investors: | N. Murray Edwards (C$16.2 million), Fairholme Partnership, LP (C$8.1 million), company directors (C$1.6 million), Tahltan Nation Development Corp.
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| Announcement date: | July 20
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| Distribution: | Private placement
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| Agent: | Non-brokered
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| Stock ticker: | TSX: III
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| Stock price: | C$7.30 at close on Aug. 24
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| Market capitalization: | C$557 million
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