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Imperial Closes $30 Million Convertible Debenture Private Placement Financing

Imperial Closes $30 Million Convertible Debenture Private Placement Financing

August 24, 2015


August 24, 2015 | Imperial Metals Corporation (the “Company”) (III-TSX) is pleased to announce the closing of its previously announced non-brokered convertible debenture private placement financing for gross proceeds of $30 million.

Each $12 of principal amount is convertible into one common share of the Company upon at least 61 days advance notice. The convertible debentures are not callable unless the closing price of the Company’s common shares exceeds 125% of the conversion price for at least 30 consecutive days. Interest at 6% per annum will be payable semi-annually, with the first payment due on June 30, 2016. The convertible debentures mature on August 25, 2021.

N. Murray Edwards and The Fairholme Partnership, LP purchased $16.2 million and $8.1 million of the convertible debentures, respectively. The Company is also pleased to confirm the participation of the Tahltan Nation in the convertible debenture financing through the Tahltan Nation Development Corporation. In addition, directors of the Company and an associate of a director purchased $1.6 million of the convertible debentures.

The proceeds of the convertible debenture financing will be used as set out in the Company’s rights offering circular dated July 20, 2015.

This news release does not constitute an offer for sale or the solicitation of an offer to buy any securities in the United States. The securities referenced herein have not been registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent such registration or an applicable exemption from such registration requirements.

About Imperial

Imperial is an exploration, mine development and operating company based in Vancouver, British Columbia. The Company, through its subsidiaries, owns the Mount Polley copper/gold mine in British Columbia, the Sterling gold mine in Nevada and the Red Chris copper/gold mine in northern British Columbia. Imperial also has a 50% interest in the Huckleberry copper mine and a 50% interest in the Ruddock Creek lead/zinc property, both in British Columbia.

Imperial Contact Information
Brian Kynoch | President | 604.669.8959
Andre Deepwell | Chief Financial Officer | 604.488.2666
Gordon Keevil | Vice President Corporate Development | 604.488.2677
Sabine Goetz | Shareholder Communications | 604.488.2657 |

Forward-Looking Information and Risks Notice

Certain information contained herein constitutes forward-looking information which is prospective in nature and reflect the current views and/or expectations of the Company. Often, but not always, forward-looking information can be identified by the use of statements such as “plans”, “expects” or “does not expect”, “is expected”, “scheduled”, “estimates”, “forecasts”, “targets”, “projects”, “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”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Such information in this press release includes, without limitation, the Company’s use of the proceeds of the convertible debenture financing described herein.

Forward-looking information is not based on historical facts, but rather on then current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions that: the rights offering, common share private placement and convertible debenture private placement (the “Financings”) described in the Company’s rights offering circular dated July 20, 2015, fully completed as of today’s date, will provide sufficient liquidity to support the ongoing ramp up of production at the Red Chris mine, to fund the restart operations at the Mount Polley mine and to provide working capital for the Company. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. We can give no assurance that the forward-looking information will prove to be accurate.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause Imperial’s actual results, revenues, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements constituting forward-looking information. Important risks that could cause the Company’s actual results, revenues, performance or achievements to differ materially from the Company’s expectations include, among other things: risks that the Financings will not provide the expected liquidity or benefits to the Company’s business or operations; and other hazards and risks disclosed within the Company’s rights offering circular dated July 20, 2015, the Company’s Management’s Discussion and Analysis for the year ended December 31, 2014 and other public filings which are available on the Company’s profile on SEDAR at For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Imperial does not undertake to update any forward looking information, except in accordance with applicable securities laws.

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