However, the mine restart took longer than planned due to difficulties in hiring operating personnel, supply chain challenges and unanticipated electrical and mechanical work. This, together with lower copper prices, caused a shortfall in revenues compared to budget. In addition, Imperial Metals’ previously announced rights offering was not fully subscribed, resulting in a shortfall in budgeted equity financing. Due to these reasons, the company is now seeking additional funding via debt financing.
The convertible debentures will have a five-year term ending August 31, 2027. Each C$3.20 of the principal amount will be convertible into one common share of Imperial Metals. Up to 14.06 million common shares are expected to be issued if all the convertible debentures issuable were converted.
Murray Edwards, the company’s largest shareholder, has advised that he intends to purchase between C$30 million and C$35 million of the…
