Vancouver-headquartered Imperial Metals Corporation is seeking to secure additional funds for restart activities at its Mount Polley copper and gold mine by way of a nonbrokered private placement of $45-million in convertible debentures.
The company notes that the mine is operating at targeted production rates as the restart progresses; however, the restart took longer than planned owing to difficulties in hiring operating personnel, supply chain challenges and unanticipated electrical and mechanical work.
"This, together with lower copper prices, caused a shortfall in revenues compared to budget. In addition, the rights offering was not fully subscribed, resulting in a shortfall in budgeted equity financing.
"Due to these reasons, the company now seeks additional funding by way of a convertible debenture financing," the company explains.
Mining Weekly reported in May that Imperial Metals was preparing to restart milling operations at the Mount Polley mine, in British Columbia. The mine was initially closed in 2014 following a tailings dam breach.
Operations restarted in 2016 but were placed on care and maintenance again in 2019 as a result of low copper prices at the time.