Imperial Metals Gets Cash Injection from Biggest Shareholder

The Financial Post reported that N. Murray Edwards, the largest shareholder of Imperial Metals Corp. (TSX:III), has agreed to lend the company $30 million.

The start of full production has been delayed at the company’s Red Chris mine, and the money will be used to help get the operation back on track. Imperial is planning an $80-million rights offering to repay the loan from Edwards and further fund Red Chris.

As quoted in the market news:

On Friday, Imperial said it was looking for alternative sources of financing after delays at Red Chris, caused by reduced water supplies, meant it risked defaulting on a loan.

Imperial’s revenues have tumbled since it closed the Mount Polley mine in B.C. last August following the collapse of a dam that sent billions of gallons of wastewater pouring into local rivers and lakes. Later that month, Edwards backed a $100-million bond sale to help fund the cleanup.

Edco Capital Corp., which is owned by Edwards, and the Fairholme Partnership LP agreed to subscribe to the rights offer.

Click here to read the full Financial Post report.