Mr. Brian Kynoch reports
IMPERIAL PROVIDES OPERATIONAL AND FINANCIAL UPDATE
Imperial Metals Corp. has provided an operational and financial update.
Imperial Metals has reorganized the management structure at the Red Chris mine, appointing its vice-president of operations, Randall Thompson, as general manager. In this role, he has a mandate to direct improvements of the Red Chris mine operations.
- An action for damages arising out of the Aug. 4, 2014, failure of the perimeter embankment at the Mount Polley mine has been settled among all parties to the action in consideration of net payments to the company totalling approximately $108-million. Upon receipt of the payments, a consent dismissal order will be filed. This settlement represents compromises of disputed claims and does not constitute an admission of liability on the part of any party to the action.
This settlement provides liquidity for the company to allow the special committee additional time to complete its process of reviewing, identifying, negotiating and, potentially, implementing all strategic alternatives, including the sale of some of the company's assets, joint ventures, a recapitalization, and a sale or merger of the company. The special committee has selected a financial adviser to provide advice through the process.
In accordance with the existing buyback option, the directors of the company have approved the repurchase of the 0.5-per-cent net smelter return royalty interest in the Red Chris project sold in September, 2018. The buyback option provided for the repurchase of this royalty by the company for $17-million (U.S.), being equal to the proceeds received on the royalty, plus simple interest at 6 per cent per year.
About Imperial Metals Corp.
Imperial Metals is a Vancouver exploration, mine development and operating company. Imperial Metals, through its subsidiaries, owns the Red Chris, Mount Polley and Huckleberry copper mines in British Columbia. Imperial Metals also holds a 50-per-cent interest in the Ruddock Creek lead/zinc property.
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