Imperial Metals is looking to raise $55 million through equity financing.
The company, which operates the Mount Polley mine near Williams Lake and the Red Chris mine in northwestern B.C., announced last week that it intends to issue, on a private placement basis, up to 10 million common shares at a price of $5.50 per share. Significant shareholders of the company and a director of the company have indicated that they intend to subscribe for a minimum of $42 million of the financing (7,636,363 shares), according to a company press release. The company may accept subscriptions for up to another $13 million of the financing (2,363,637 shares) on the same terms and conditions.
The company intends to use the net proceeds of the financing to improve its working capital and for general corporate purposes.
Closing of the minimum $42 million of the financing from the significant shareholders and director is expected to occur before December 31, 2016 with any additional subscriptions to the financing to close in early January 2017. Closing of the financing is subject to receipt of all necessary regulatory and stock exchange approvals.
Imperial also holds a 50 per cent share in the Huckleberry mine near Houston.