Imperial Metals (TSX: III) is raising gross proceeds of up to C$16.8 million ($12.5m) via a private placement to fund the development of its 30% owned Red Chris mine in northwest British Columbia. Seven million common shares priced at C$2.40 each will be issued.
Majority shareholder Murray Edwards is expected to purchase half of the offered shares for a total of C$8.4 million. Directors and officers of the company will also purchase C$1.10 million of the shares.
The Red Chris mine is located approximately 80 km south of Dease Lake in northwest British Columbia. The project development comprises an open pit copper-gold mine and a 30,000-tonne capacity mill with an estimated life of more than 28 years.
Newcrest Mining, its majority owner (70%), is looking to extend the operation by mining the underground resources at Red Chris. A 2021 prefeasibility study detailed a block cave mining operation that is expected to produce 4.9 million oz of gold and 1.5 million tonnes of copper over 31 years, starting in 2027.
A feasibility for the underground block cave operation is expected later this year, Newcrest has said.
The private placement represents the latest round of funding secured by Imperial for its BC mine projects. In August, the company announced a debenture financing of C$45 million to support the restart of its Mount Polley mine, located about 56 km northeast of Williams Lake.