Imperial Metals’ Mount Polley reboot faces budget shortfall
The convertible debentures will have a term of five years ending August 31, 2027. Each C$3.20 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 convertible debentures issuable are converted.
Murray Edwards, the company’s largest shareholder, has said he intends to purchase between C$30 million and C$35 million worth of debentures.
Located about 56 km northeast of Williams Lake in south-central British Columbia, the Mount Polley underground copper-gold mine was first closed in 2014 after a mine collapsed. massive tailings pond. Imperial Metals had to rebuild the mine tailings and spent over C$70 million on environmental remediation. Operations resumed two years later, but were halted again in 2019 due to a drop in copper prices.
In an effort to revive the operation, Imperial Metals has spent approximately C$22.4 million in one year, since the end of the March 2021 quarter. This includes C$21.7 million in operating expenses and 700 000 $CAN in amortization expense. Exploration, development and capital expenditures at Mount Polley increased by C$2 million in the March 2022 quarter compared to the 2021 quarter.
Within a week of repairing a key electrical component on July 27, the Mount Polley concentrator produced concentrate containing approximately 336,000 pounds of copper and 550 ounces. of gold against budget for the initial week following the start of 188,403 pounds of copper and 495 ounces. Golden.