Imperial Metals Reports “Significant Impacts” of Tailings Dam Breach on Operations and Finances

Imperial Metals Corporation (TSX:III) released its third quarter financial results on Friday. The company reported that the tailings dam breach that occurred earlier this year at its Mount Polley Mine in British Columbia has had “significant impacts on the Company’s operations and financial position.”

As quoted in the press release, some major impacts of the breach included:

• Mount Polley mine operations are suspended, depriving the Company of its main source of cash flow.
• The Company recorded costs of $67.4 million ($43.8 million net of tax) in the September 2014 period related to the tailings dam breach. These costs include $20.3 million incurred for response and recovery as well as initial rehabilitation and restoration activities. The $67.4 million in costs also includes a $47.1 million provision for future costs related to the tailings dam breach, exclusive of estimated insurance recoveries. Insurance recoveries will be recorded when received.
• The Company completed a $115.0 million convertible debenture financing on September 4, 2014 to assist with the tailings dam breach remediation costs and the completion and startup of the Red Chris mine.

Click here to read the Imperial Metals Corporation (TSX:III) press release