North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Imperial Metals Corp. June 26 provided an update on terms of previously announced financings totaling roughly C$80 million as well as the Red Chris commissioning progress.

The company previously reported its intention to raise about C$80 million in gross proceeds from a combination of rights to purchase common shares of the company and the issuance of convertible debentures.

Oil sands financier and major Imperial shareholder N. Murray Edwards, Fairholme Capital Management LLC and Fairholme Partnership intend to purchase large portions of the shares being offered in three financings that include a rights offering, private placement of shares and a private placement of convertible debentures.

Imperial Metals also expects Edwards and Fairholme Partnership to commit to purchase 66.67 percent and 33.33 percent respectively, of any of the unpurchased shares and debentures offered.

In exchange for backstopping the financings, Imperial Metals expects to pay the guarantors a fee of 3 percent of the gross proceeds of the financings, excluding proceeds from the exercise of rights issued in respect of common shares owned or over which the guarantors or their affiliates have control or committed to purchase.

At the Red Chris Mine in northwestern British Columbia, commissioning is progressing with a third shipment of concentrate being loaded.

Once the third ship is loaded, about 30,000 metric tons of concentrate containing about 15.6 million pounds of copper and 5,160 ounces of gold will have been shipped during the second quarter.

Imperial said the construction of the tailings dam at Red Chris is about 30 percent complete.

Water supply continues to cause some downtime to mill operations, although its impact lessened in June.

Metallurgical recoveries are improving as adjustments continue to be made to milling operations.