Monday January 28, 7:13 pm ET
VANCOUVER, BRITISH COLUMBIA–(MARKET WIRE)–Jan 28, 2008 — Imperial Metals Corporation (Toronto:III.TO - News) reports the Company has arranged for a $25 million revolving working capital facility, with Edco Capital Corporation, a company controlled by N. Murray Edwards, a significant shareholder of Imperial, and Balinhard Capital Corporation, a company controlled by Larry Moeller, a director of the Company. Edco Capital Corporation will provide $22.5 million of the facility and Balinhard Capital Corporation will provide $2.5 million of the facility.
The facility, which bears interest at 10% per annum, will be secured by a floating charge on all the assets of Imperial plus guarantees by Mount Polley Mining Corporation and Red Chris Development Company Ltd. The term of the facility ends on December 31, 2008. In consideration of the facility, the lenders will be granted one warrant for each $25 advanced under the facility such that warrants to purchase up to 1,000,000 common shares of Imperial at $10.00 per share, exercisable until July 31, 2009 could be granted. A maximum of 1,000,000 warrants would be issued to Edco Capital Corporation and Balinhard Capital Corporation if the facility were fully drawn. An arrangement fee of $168,750 is payable to Edco Capital Corporation and $18,750 is payable to Balinhard Capital Corporation. This transaction is subject to approval by regulatory authorities.
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